Festival season sparks surge in luxury home sales

GROWING DEMAND. Sales and new launches likely to exceed 3,00,000 units for the second consecutive year

— TE Raja Simhan Chennai

Housing developers are ecstatic with the positive house-buying sentiment this festival season, which will contribute to a record sales this calendar year. Both sales and new launches are likely to exceed 3,00,000 units for the second consecutive year.

There 1s also a growing demand among consumers to purchase premium/luxury houses priced above 2 crore this festival season. With several new properties being developed across the country, consumers have a diverse range of choices based on their budget, say developers.

GROWTH PROJECTION

Anshuman Magazine, Chairman & CEO - India, SouthEast Asia, West Asia & Africa, CBRE, says this festival season is expected to witness a

surge in property launches, a trend consistent with previous years.

Given the strong performance in the first half of 2024 and the sector’s propensity to peak during the festival season, “we anticipate that both sales and launches will surpass 3,00,000 units for the second consecutive year,” he said.

The luxury housing segment, particularlyin the ₹2-4 crore and above range, continues to attract interest from high-net-worth individuals (HNIs) and non-resident Indians (NRIs).

This demand is drivenbya desire to secure higher return on investments amid global economic uncertainties. An emerging segment of upper-middle-class buyers is increasingly willing to allocate larger budgets to enhance their lifestyle, indicating sustained robust activity in this space, he says.

“The sentiment this fest .’T;_-m. b I " L Py, Bl

MORE VARIETY. With several new properties being developed

across the country, consumers have a diverse range of choices based on their budget, say developers

ival season is positive and there is an increase in the number of enquiries. This is an auspicious time for making new investments in real estate, and strong sales are expected this quarter,” says Viswa Desu Pratap, COOResidential, Brigade Group.

“Our average ticket size is ₹1.25 crore and we see a high interest in the category of units costing ₹1.25X2.5 crore. The luxury segment of X2 crore and above is equally attracting strong interest as the market acceptance on the higher ticket size has

been good,” he said.

Praveer Shrivastava, Sr Executive VP, Residential, Prestige Group, said, “The first half of this year has witnessed an astounding rise in the real estate industry and we predict that the growth trend will only rise further during the festival season and record unprecedented heights in the latter half of this year.”

“Demand will continue to heavily outweigh supply by a significant margin. In FY2324, we had a healthy demand and several notable launches during the festival season.”

SALES FORECAST “This year, on the back of upcoming launches in DelhiNCR, Bengaluru, Hyderabad and Chennai, we are expecting to double sales during the festival season compared to last year,” he said.

The bulk of the demand is from the upper-middle-class and working professionals,

who are keen to purchase homes for end-use in a ticket size range of ₹2-3 crore. Luxury properties above 3 crore have emerged as a high-value asset class as both small and large investors are increasingly drawn to luxury properties as a lucrative investment opportunity, he added.

S Sivagurunathan, Executive Director of Navin's, said the market is looking up. “When compared to last yeat, it has grown at least 50 per cent more. Since the market is good, the budget has increased and 50 lakh to X1.5 crore segment is doing good.”

The luxury segment has improved and Y234 crore homes have a strong market demand and the developer’s ticket size is moving quickly, he added.

According to Bharat M Jain, Director, Arihant Foundations & Housing Ltd, “While the demand has re mained strong, supply has grown at a measured pace, with new launches aligned to meet market needs. The festival period, coinciding with extended weekends and travel plans has led to slightly longer decision cycles, yet overall demand remains robust and steady.”

“In the luxury housing segment, there has been a clear trend toward larger apartments as affluent buyers seek expansive living spaces that blend quality, exclusivity, and value,” he said.

APPEALING OFFERS Towoo customers, Magazine of CBRE says developers are preparing an array of appealing offers. This includes EMI waivers, GST exemption and free registration and stamp duty. However, rising property prices and global uncertainties may prompt buyers to consider their decisions as they weigh the current market dynamics, he said.