Brisk Sales Of Residential Property This Diwali
New Delhi: After a longish lull in the residential real estate market, there was some respite for the developers as the sales jumped in double digit figures during the festive period of Diwali this year as compared to last year.
“During this Diwali, the property sales have risen around 20 percent year-on –year across the major cities in India," said Kaveri R Deshmukh, Senior Associate Director – Research, Colliers International India.
The month of October this year covered both Navratri and Diwali, considered to be auspicious time to buy property. One reason for the sales to increase this year has been rise in projects which are nearing completion. “Demand for ready properties or those nearing completion from Grade A builders is certainly on the rise as new-age buyers don’t mind compromising on property size but are very much in favour of mitigating their risks to the maximum,” said Anuj Puri, Chairman, ANAROCK Property Consultants.
Another reason can be the steps taken by the government to boost the prospects of the real estate industry in the country. “Structured reforms brought by the government in the last three years have transformed the India real estate market. We have witnessed an upward trend across markets in demand and sales both,” said Ramesh Nair, CEO & Country Head – India, JLL.
The interest rates have been going down and home loans have become more attractive in the country now. “Since February 2019, Reserve Bank of India BI has cut its interest rate by total 135 basis points. This has lowered the cost of borrowing for end customers,” Deshmukh points out.
The efforts of the government and the lower interest rate regime have been major causes for sales jump this year, says Niranjan Hiranandani, President, NAREDCO. “Initiatives and positive steps by the Indian Government have resulted in a positive attitude, resulting in many a fence-sitter turning into an actual buyer this festive season. With home loans at historic low interest levels, the festive season saw buyer sentiment turn positive,” he says.
The sales of housing stock in the immediately prior three months period, that is, July-September has been much lower this year as compared to last year. The sales were down 18 percent in July-September period of 2019 as compared the same period of the 2018, according to ANAROCK property consultants. Even for the rest of the current year, sales have been slow.