Home Buying turns positive on back of festive tailwinds

Dr Niranjan Hiranandani – National President -NAREDCO and MD- Hiranandani Group

On the back of festive tailwinds, the real estate market is anticipating sentiment driven growth in demand resulting in high sales velocity. The reinforced significance of owning an own property has essentially driven first home sales across the affordable segment. The need for additional flexi space in wake of a new normal consisting of work, study, fitness from home has nudged the existing homebuyers to upgrade to luxurious apartments. This trend has fuelled demand for mid & luxury homes across the market. Given this trend, demand during the festive season is expected to keep growing.

The festive season will see more green shots in demand on the back of deal sweetener and innovative flexi payment schemes offered by the developers and banking & financial institutions. The demand for ready to move in homes is surging from the branded developers and also attracts no GST cost. The current market scenario doesn’t warrant any distress sales or any remarkable price cuts with skyrocketing raw materials and labour cost. The record high property registration signifies reduction in unsold inventory, aiding developers to refinance the debts. This will pump up financially sound developers to launch new projects to avail festive fervour in the leading market segments. Industry has represented to re-introduce input tax credit on under construction properties which will cushion the home buying. The new launch across various micro markets is being witnessed on the back of remote work culture that pushed demand in peripheral suburbs. The rise of suburban living will gain traction as it offers well planned development, integrated township living, rich social fabric, spacious homes and slew of upcoming infrastructure to redefine the ease of connectivity.

The cascading effect of bolstered vaccination drive has resulted in sectoral growth momentum spurring the economic growth. Industry was well -geared to chart the business continuity plan during the second wave with quick adoption of innovative technologies and prop-tech platforms. The digitization of home booking has enabled the potential homebuyers to well research the properties before finalizing their dream home. Thus, this festive season will record positive growth in accordance to improving GDP growth rate.