Even though holiday bonuses are nearly a given every year, this year, they may be crucial to maintaining sustained sales growth over the next quarters.
Due to low mortgage rates and the lingering effects of the epidemic, home sales have remained robust all year. Although current house loan rates are around 7.9% after hovering around 6.6 percent for the previous two years, demand is still high.
Home sales have been consistently strong throughout the year because of cheap mortgage rates and the ongoing effects of the epidemic. This trend is anticipated to pick up speed around the holiday season because it is believed that buying a home around that period will bring good fortune. Given that interest rates are still less than before the outbreak, it is clear that the rise hasn’t greatly influenced the demand for home loan rates.
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Contemporary Scenario of the Real Estate Market
Due to low mortgage rates and the lingering effects of the epidemic, home sales have remained robust all year. Although current house loan rates are around 7.9% after hovering around 6.6 percent for the previous two years, demand is still high.
Because the impending holiday season is thought to be lucky for home purchases, this tendency is anticipated to pick up steam around that time. In light of the fact that despite the interest rate continuing to be low before the epidemic, we can see that the increase in house loan rates has not significantly impacted demand.
Since festivals frequently represent fresh starts and success, purchasing real estate this season is a surefire investment. This belief was confirmed during the festival season of 2021 when the real estate industry rebounded with reprisal from July to September after suffering a significant setback during the start of the Covid-19 outbreak and lockdown. Housing transactions increased by 92% in the eight major cities from July to September. A Diwali survey conducted the previous year revealed that 51% of Indians living in urban places thought the festival season was the greatest moment to buy real estate.
Rising Demand for Property
The Mumbai Metropolitan Region (MMR), Ahmedabad, Delhi-NCR, Chennai, Pune, Kolkata, Bengaluru, and Hyderabad are the eight cities that have experienced a spike in residential demand, according to The Confederation of Real Estate Developers Association of India (CREDAI), Liases Foras’, and Real Estate Consultant Colliers India, Housing Price Tracker Report 2022. According to the research, the demand during the April to June quarter resulted in a 5% increase in pricing and a slight decrease in inventory that remains unsold. In addition, it forecasts that demand and prices for residential real estate will increase over the following eight months.
This year’s holiday season is predicted to see a spike in interest in residential homes due to people wanting to purchase a property before prices rise. Real estate developers are releasing numerous new projects with innovative amenities in the expectation of increasing demand. To entice consumers, developers are also providing gifts and other incentives. Even though holiday bonuses are nearly a given every year, this year, they may be crucial to maintaining the sustained sales growth momentum over the next quarters.
see also – Know Why Real Estate Market Booming Despite Higher Rates
Trends and Factors
The pandemic has brought about many changes in the real estate market, some of which are as follows:
- Companies are now looking for Flexibility in the workplace, and grade-A offices as hybrid work cultures become the norm.
- Due to the growing habit of working from home, customers choose large, roomy residences.
- In the modern workplace environment, distance doesn’t remain a barrier, so if a buyer finds their dream home in the suburbs in far-off places or further, he or she will still pay the money for it.
- In addition to being environmentally friendly, millennials desire homes with advanced automation and Internet of Things (IoT) technologies.
The real estate industry has many reasons to celebrate this holiday season, with many factors encouraging individuals to invest!
Luxury and ultra-luxury residences are in high demand, particularly among the NRI population. NRIs now have more money to spend and are interested in purchasing luxury houses in the towns and cities where they were born. Plotted developments have also gained popularity among NRIs, prompting many developers to enter this market.
To Sum it Up!
This holiday season, a variety of properties are available. Developers are certain that the demand for homes would be healthy due to the strong yearning to own a home and the alluring offers and freebies. High hopes exist that the holiday season will boost home sales, and the number of purchases will significantly rise after the holidays.
