Developers aim for 20% YoY home sales boost this festive season

Schemesand launches planned despite interest rate disappointment

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ANUSHREE PRATAP BENGALURU, DHNS

ome buying sentiments are strong this festive season, according to realty developers and consulting firms, particularly for the mid-market and premium segments. Manydevelopersareexpecting more sales compared to last year’s festive season. Some suchas Shriram Propertiesand Sterling Developers have said they are aiming for up to 20% year-on-year (YoY) growth compared tolastyear. “Iforeseeatleast].5lakhnew homes being sold in the next three monthsacross the top six cities in the country,” said Ravi Shankar Singh, Managing Director, Residential Transaction Services, Colliers India. Over 1.27 lakh units were sold across the top seven cities in the October-December 2023 period, as per AnujPuri, Chairman, ANAROCK Group. AnshumanMagazine, Chairman and CEO, India, SouthEast Asia, Middle East and Africa, CBRE, said that rising property prices are affecting buyers’ decisions. Still, the luxury housing segment is seeing demand driven by a desire to fetch higher return on investments amid global economic uncertainties. This period is also expected

to see a boost in new property launches, with Brigade Group and Concorde among those whoareplanningnewlaunches.

Developers are also launching schemes and discounts during this period to attract home buyers. “These range from equated monthly instalment (EMI) waivers, GST exemptions,and freeregistration and stamp duty to added benefits like modular kitchens, electronics, free car parking spaces, andeven furnished apartments. To furtherattract buyers, some developersare partnering with banks to offer fixed interest ratesforasetperiod,”Magazine explained.

Real estate companies have also pitched perks like flexible payment plansandreturnoninvestment (ROI) programmes. During this period, Concorde hasincreased its marketing expenses by 25%.

“Despite higher loan rates, homeownershipremainsa priority for many. RBI data shows a substantial 40% increase in home loan deployment,” Magazinesaid.

Manyrealty developers were also hoping for a reduced repo rate given by the RBI, which remained unfulfilled. Still, they remainoptimisticabouttheunchangedrate.

“Policy stabilitybodes wellin the ongoing festive season. As andwhenarate cutisanticipated, which, when implemented, will benefit both homebuyers and real estate developers to capitalise on the market and strengthen overall economic growth,” said Pradeep Aggarwal, Founder and Chairman, Sienature Global (India).