Diwali is a season of renewed hope, and the positive vibes of the festival also spreads to real estate. The market has been in a slow down in both Tier 1 and Tier 2 cities in the recent times. There have been small pockets of revival and renewed buyer interest in many cities over the recent months. This renewed interest has given hope to builders that there will be a revival in the market. For this the best season where many new investments are made is Diwali.
There are several factors that are impacting the revival of interest in real estate investments from buyers across various Indian cities.
Buyers today are more careful and aware. The new RERA act has been implemented across several states and this has also increased buyer confidence regarding the safety of their investment.
Consumer demand exists but today there are two conditions that need to be satisfied for it – right price and on-time delivery. Builders with good track records are seeing more enquiries than new builders or builders who have failed to deliver in the past.
Government Revival plans
The special scheme by the government to support builders who are constructing affordable housing projects is also boosting buyer confidence and renewing interest. Also, completion of several critical government infrastructure projects such as metro, flyovers, sanitation, water supply, etc, has revived several areas that saw a total slump in the past years.
Reduction on Home loan rates
The recent reduction in home loan rates is another factor that has made buyers relook at purchasing a home instead of just settling for rentals.
Reason for purchase
Today the market is reviving for buyers who want to buy a home for their own use. Earlier a bulk of the small investment homes used to be picked up by investment speculators who are no longer investing in such a big way into real estate. The buyer is the end user and thus there is a bigger push from the buyer to close sales faster in good quality projects.
Bonus Disposable Income
During Diwali, companies offer a bonus, which means a chance of extra savings and money.
The enquiries for residential and commercial property have picked up in the last three months and builders are hopeful that this renewed interest will culminate into sales in the next few months. There is hope that the last 2 quarters of this financial year will see a significant demand from buyers in both residential properties and commercial. While there is no indication if this renewed interest will take the market to the earlier boom period, but it will definitely pull it out of the slowdown mode.