Spike in Indian Real Estate after Festive Season 2021

Festive season 2021 is all set to revive the Indian real estate sector. With a dismal first half due to the second wave of the Covid-19 pandemic, real estate in India came to a standstill.

The first half of 2021 and the entirety of 2020 was spent in an economic slowdown. Things have not been the best, but festive season 2021 looks optimistic.

Here’s why experts believe festive season 2021 could boost the real estate sector in India:

• First festive season since 2019 – The first festive season since the pandemic began is here. From October to December 2021 will likely spread festive cheer that was lacking for more than a year. Festivals like Diwali, where Dhanteras is a big deal for people, can do much to revive real estate in India. Thanks to the internet and more awareness, people are now considering investment options for Dhanteras shopping. There are uncertainties, but it is safe to say that the optimism about real estate is not misplaced. Festive discounts are also an excellent incentive for people to invest in Indian real estate.

• Reopening of businesses – With the gradual reopening of markets and businesses, it is safe to assume that there will be a boost of sales and growth in real estate. The economy may have a slow recovery, but the re-opening of businesses and markets can help. A report suggests that there has been a 113% increase in the top seven Indian cities in real estate. The statistics were calculated in September, that is, before the festival season 2021 set in. This number denotes that there has been an increase in home sales. The festive season could prove to be a lucrative opportunity for developers to reel in buyers.

• Newfound interest in investment options – Financial literacy is on the rise, as is financial technology. It is solving the issue of inaccessibility when it comes to investment options. Several fintech platforms have made it easy for investors to invest in real estate. Instruments like Real Estate Investment Trust (REITs) are also making real estate investment accessible for small investors. With REIT, investors can now pool in money – a lot like mutual funds.

• Lower property rates and interest rates – The economic slowdown has plummeted rates of interest and property prices. Property prices are stagnant, and the festive season 2021 could be the perfect time to buy. This could sweeten the deal for prospective buyers. Home loans are available at lower rates of interest which could further attract new investors. To increase sales, a lot of agents offer festive discounts as an added bonus. Prospective buyers could take advantage of these festive offers. The depreciating Indian Rupee is also a key factor that could increase real estate investments.

• Homeownership and the pandemic – The uncertainty of the pandemic has led many people to invest in their own houses. Despite the threat of the third wave of Covid-19, there has been a rise in the real estate sector. Both housing and commercial real estate have seen an increase in sales in the third quarter. More people are looking for ready-to-move-in houses as it removes an element of uncertainty. Commercial real estate like homestays is also on the rise. It could be a possible investment option for buyers.

The bottom line: an innovative sales strategy

While there is optimism about real estate growth, there is also uncertainty. For instance, the uncertainty regarding jobs and salaries in 2021 may be better than in 2020. However, there is still a high unemployment rate, all because of the pandemic. Even though the prices are lower than usual, it would not matter unless people have a stable job.

The conclusion is that real estate needs an innovative sales strategy now more than ever. Incentives, offers and other discounts as well as content could work well for Indian real estate. 

Multiple payment options could also motivate buyers to invest in real estate. Such payment options can increase the flexibility of payments and lure more buyers. Moreover, if the upfront payment is not very high, it could act as an additional incentive. If the real estate sector could regain pre-Covid sales, it would be enough of a bounce back.

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.