The significance of festivals goes beyond the social and cultural implications. They are the economic drivers as the consumption patterns rise and new products are launched. The festive season sales brought cheers to the consumer goods industry recording almost 8-10 per cent volume growth over the last year's festive season. India's automobile sector registered a minimum of 40 percent growth in the festive season.
Another major beneficiary of this festive season has been the home improvement sector with paint makers and tile manufacturers witnessing robust sales volumes in premium and luxury products. What's more, real estate buying saw a new fervour among people, as they are gravitating towards a long term investment medium with consistent appreciation, less impacted by the volatility in the market.
FESTIVALS STAND FOR PROPERTY BUYING
People looking to invest in property await the auspicious times, driven by cultural sentiments. And to make the most of the opportunity of consumer sentiments riding high, the real estate firms go on a 360-degree marketing spree, packed with new project launches and interesting offers.
Tier 1 and Tier 2 cities are seeing a cumulative spike in demand in residential as well as commercial segments. While luxury residential has seen most inquiries and footfalls converting into decent sales, mid-luxury and affordable segments have been the most selling properties, banking on low investment costs and additional benefits.
Going by the momentum in housing sales, 2022 is likely to breach the previous peak of 2014 with all-time high sales across the top 7 cities. Latest ANAROCK data projects total sales in the top 7 cities to exceed 3.6 lakh units in 2022. In the previous peak year of 2014, the top 7 cities saw 3.43 lakh units sold.
THE NEW DIRECTION
The festive season incentives have been more or less similar as doled out every year and as always are a way of clearing unsold inventory by the developer. Benefits of buying a home on festivals, range from a low-interest rate home loan, brokerage discounts, cash bonus, gold coins and benefits on registration fees or stamp duty. For mid- income and affordable segment home buyers, such benefits are an important consideration, however in the premium and luxury segment the buying decisions are more long term driven than periodic festival times.
The phenomenal upward trend in housing sales can be attributed to the pandemic making ‘homeownership’ a priority amongst the millennial, availability of ready to move in properties, as well as new launches at attractive prices and the home loan rates still being in an affordable limit despite the three successive rate hikes by the RBI. The new shifts in home buyer’s behavior observed this season included elevated demands for high-quality homes, more consumers opting for organized and reputable real estate and consumer preference shifting from residential flats to plotted properties within gated societies.
