Festive Season to Uplift Consumer Sentiments in Supplement with Fiscal Remedies

Dr Niranjan Hiranandani – CMD -Hiranandani Communities.

The Government of India has proactively announced fiscal measures in order to revive the economic slowdown. The fiscal aid is well intended to make liquidity available with the end users resulting in positive sentiments in wake of festive season to boost up the consumption. The festive season marks auspicious time to make a buying of any new goods or homes. Currently, the festive season is complimented with the favorable external sentiments and the right push from the GoI to roll on the demand- consumption cycle.

In wake of economic policy reforms consecutive implemented have resulted in turmoil in the Indian Real estate sector leading to the system reboot. The financial discipline and compliance mechanism put together grants transparency and accountability on the concerned stakeholders making it a safe deal in the sector. This tsunami’s have definitely triggered the sales momentum and resulted in demand slowdown across the country. Liquidity crisis amplified the prevailing slowdown situation, bringing everything to grind halt in the sector. Later, with the acknowledgement of the apex bodies and GoI about the rippling effects of policy reforms on the businesses of business had led to fiscal remedies announced recently. The commencement of the auspicious festive season paves the road for uptick in sales momentum in supplement to fiscal remedies granted to the sector.

Annual festive season is awaited to grant required impetus to the demand –supply of the market leading to boost in investments. The externally favorable situation like lower home loan interest rates, benefit of repo-rate cut directly being linked to the new home loan issued to the buyers, credit subvention under PMAY Urban scheme by Govt of India to promote affordable housing, rationalization of GST and other taxes, multiple choices of homes available to buyers, negotiated deals with better bargains makes it right time for the home buyer’s.

Across India, we have special terms that emphasize the importance of certain festivals and the auspicious actions associated with the same. ‘Griha Pravesh’, or the act of first entry into one’s new home, is something best associated with festivals – from Navratri/ Durga Puja through Diwali to the New Year. Traditional belief suggests that the home buying experience during auspicious festive days is considered to be lucky, and these days are looked upon as extremely important and favourable festive occasions to buy or move into one’s dream home

Adding to the festive sentiment, going beyond just tradition and sentiment, the new regulatory regime has brought in a paradigm change in how the real estate Industry operates. This has enhanced buyer confidence with the requisite transparency and compliance model.

To sum up, during the run-up to this year’s festive season, there have been a series of positive moves from the Indian Government. Any positive move by the Government tends to have a positive impact on the economy across various industries; and the impact of these should ideally, be one where the positive sentiment, would boost investments and consumption.