Every year, the festive season, starting from the month of August (Ganesh Chaturthi), followed by Navratri and leading to Diwali sales, is a favourable time for the realty sector. However, only last year, post the demonetisation announcement, the market sentiment was low. So, will it be any different this year?
Difference in the present situation
Real estate developers are making efforts to allure the buyer with festive offers. It includes offering freebies as normal. There are offers of free gold coins, international holidays to innovative payment schemes. But the crucial point is, are the buyers paying any heed? Agreed, it is natural on the part of realty sector to boost the buyer sentiment, by coupling a home purchase with incentives in-kind. This is the time when a prospective buyer will at least do some research and look for a good bargain if at all there is an intent. So, is there any intention to purchase a property?
The present buyer sentiment
More than the prosperity or austerity associated with the festival period, it is the slew of reforms which has created a positive buyer sentiment. The recent implementation of RERA, GST and competitive home loans rates, can be the triggering factors for a real estate recovery. It is a commonly acknowledged fact that the real estate industry was in a wait and watch mode. Demonetisation created the expectation. Now, with the RERA Act and GST in place, buyers look forward to approaching property buying with improved confidence. The paradigm shift for buyer is-transparency. So, does it mean that there is greater customer pull than the developer push?
The favourable developer scenario
The developer may not be out in the market with new launches. However, they have a reason to harp on the changed buyer sentiment. One, they have a lot of inventory pile up and it is indeed the big focus for the multi-player industry. It perfectly complements the buyer mood and taste, as they too are willing to invest in ready-to-move-in properties.
Second, real estate developers have a new opportunity for investment. The recent boost of affordable housing segment by the present government has already created an on-ground impact. Some of the reputed developers are looking to launch new projects in the volume-driven business of selling affordable reality units. With their focus shifting towards doing brisk business later, some of them are even doling out cash discounts and attractive payment options to make considerable profits by selling the unsold units at a quick pace, after a slowdown.
The integrated role of festive season
Many people continue to make real estate investment during the auspicious festive period because of religious sentiments and of course, the attractive buyer offers. Even though this year, it is reformed scoring over the festive pull, to simply put aside the festive season push by the real estate sector companies is unrealistic. The current course of action, like enthused interest in ready-to-move-in properties, lucrative home loan schemes to reasonable home loan rates, coupled with festival enthusiasm, does seem to infuse the much-needed change in the sector.