The festive season has brought some cheer back to real estate developers, who said they have seen a 15-25% increase in sales during Diwali. According to the Confederation of Real Estate Developers' Association of India (Credai), a lot of projects were nearing completion and these attracted buyers. “I would say there was an increase of 20-25% in comparison with the previous year and the reason for this could be attributed to the reduction in repo rate (the central bank’s policy rate),” said Gaurav Gupta, joint secretary, Credai-NCR. Property consultant Anarock said it noticed a 10-15% rise in the number of property-related enquiries in the National Capital Region comprising Delhi and its satellite cities.
The festive period around Diwali is the peak sales season in India as many believe it an auspicious time to buy everything from gold to consumer durables and houses. While the real estate sector has been going through a tough phase for some time, industry insiders said recent government steps to boost the economy and a series of rate cuts by the Reserve Bank of India had improved the sentiment ahead of the festive season. “With home loans at low-interest levels, the festive season saw buyer sentiment turn positive. As a result, sales teams at ongoing projects have reported an uptick in the overall numbers of buyers this festive season,” said Niranjan Hiranandani, the president of the National Real Estate Development Council. Real estate developer DLF, which launched a residential project in Gurgaon during the festive season, said it took bookings worth more than Rs 700 crore on the first day of the launch. “A slew of Acts and policy reforms have empowered the buyers more this year and helped the realty industry gain their confidence,” said Amit Kaicker, DLF’s sales head for New Gurgaon.
Relief for real estate developers has come after one of the worst quarters for them. The value of homes sold in the top seven cities during July-September fell 17% year-on-year to Rs 42,040 crore from Rs 50,535 crore a year earlier, an Anarock report said. “While the exact number of sales (during the festive season) will be collated only by the end of the quarter (October-December), it is interesting to note that enquiries have increased. The focus of these home seekers is largely skewed towards Grade-A builders and for properties that are either ready-to-move-in or those nearing completion,” Anarock vice-chairman Santhosh Kumar said.
According to Dhruv Agarwala, the group CEO at real estate advisory services company Elara Technologies, growth during the festive season could be attributed to historical reasons, as people are more likely to invest in property around this time of year. Recent trends show that India’s real estate developers have changed their approach amid changing market dynamics, showing a greater interest in project delivery than on new launches.
News Source: Economic Times, Url: https://bit.ly/2NdqM7M