Residential real estate on the rise: Festive season demand
Residential real estate demand has increased over the year as domestic income has seen higher demand due to low domestic mortgage rates as well as lower supply in major cities. According to Anarock data, the stock overhang will be discounted from 38 months in Q22021 to 22 months in Q22022. This is what happened as a result of people choosing to buy their own homes during the epidemic. Reduced home mortgage interest rates helped to meet a large portion of this demand. “The demand for homes has increased significantly during the past year across the nation.
In actuality, it has become better everywhere. Because many customers wait to make purchases until the holiday season’s auspicious times, we observe the trend enduring and escalating, according to Praveer Shrivastava, senior vice president and head of residential sales at Prestige Group.
Three factors increase the likelihood that this demand will persist and contribute to a successful holiday season for real estate. The first sign of an increase in fees was a surge in entry charges. Customers opt to purchase in a market where prices are growing, which helps to improve demand. Second, despite a rise of 140 foundation points in domestic mortgage rates to 7.9%, demand hasn’t been affected because rates are still lower than the prevailing pre-pandemic rates. According to Dhaval Ajmera, director of Ajmera Realty, this is because the Indian economy continues to grow at a rate of 7 percent, despite the global catastrophe driving up interest rates.
Third, since people work from home more frequently, there has been a need for spacious homes with modern amenities.
With this as a backdrop, healthy demand for residential accommodation is anticipated throughout the holiday season. The period prior (July to September) is regarded as a monsoon-sensitive revenue period, while the Shradh period and income are typically concentrated within the October to December area.
“Several new initiatives are now being offered to utilize well-known and significant developers, which is also drawing a lot of clients and investors. The majority of buyers of homes nowadays are branded players, who in turn disclose the exact financial results of their activities, according to Anuj Puri, head of Anarock Property Consultants.
Additionally, the market may have enough ready-to-move-in inventory for discriminating buyers, which might boost sales during the fortunate holiday season [given that ready houses are in high demand]. According to Anarock Research, there are presently more than 1.21 lakh enabled devices available for purchase across the top seven cities,” he claims.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
