India’s real estate sector is gearing up for a boost in sales this festive season, propelled by the aspirations of homebuyers and developers eager to meet rising demand. Despite significant price hikes in core urban markets and construction costs that continue to climb, potential buyers are motivated by tradition and new deals presented by developers during this period. PropTiger.com reported double-digit growth in property prices in eight prime residential markets in the third quarter of 2024 compared to the previous year. While buyers anticipate a rate cut, the Reserve Bank of India’s continued stance on interest rates at 6.5% adds to the financial strain on both developers and buyers, affecting affordability. Developers are nonetheless optimistic, hopeful that the festival period will yield a sales boost of 5-20%.
Many developers, including Omaxe, are witnessing heightened demand, with some projecting substantial sales figures. Omaxe’s Managing Director stated that the company expects a notable sales increase compared to last year, marking an 85% rise over last year’s festive period. In premium locations such as Goa, Axis Ecorp anticipates strong investor interest in its luxury suite offerings, aiming for ₹30 crore in sales. This trend is not restricted to major metros; interest spans cities like Jaipur, Udaipur, and Goa, highlighting a broad-based demand. According to real estate experts, the combination of high-quality developments and festive discounts is enticing buyers to act on their property aspirations.
As developers expect heightened activity, they are addressing evolving buyer preferences, including environmentally sustainable projects that promote long-term value. Branded developers, noted for their reliability, see a significant interest surge as buyers increasingly seek trusted builders for these high-value investments. This shift aligns with a growing environmental consciousness, which promotes sustainable, eco-friendly developments. Companies such as Runwal Realty in Thane, for example, have launched projects that incorporate green features in line with the post-COVID buyer demand for healthy, amenity-rich living spaces.
The current surge in sales underpins India’s urban economic growth and reflects changing consumer behaviour, with more millennials entering the property market and impacting both residential and commercial spaces. Millennials now constitute 60% of homebuyers, underscoring the need for modern, sustainable housing options. Commercial real estate is equally robust, with leasing for premium office spaces rising by 35% as more global firms expand in India. The industry’s growth, as observed by Bharti Real Estate, points to a long-term multiplier effect on the economy, positioning the real estate sector as a pivotal contributor to India’s sustained urbanisation and economic prosperity.
