By laksh5382 
Housing developers are buoyed by the positive home buying sentiment this festive season, with record sales this calendar year, with both sales and new launches likely to exceed 300,000 units for the second consecutive year.
There is also increasing demand among consumers to buy premium/luxury homes priced above Rs 2 crore this festive season. Developers say that with many new properties being developed across the country, consumers have a wide range of options depending on their budget.
This festive season is expected to see an increase in new property launches, a trend in line with previous years, says Anshuman Magazine, CBRE Chairman and CEO – India, South-East Asia, Middle East and Africa. Given the strong performance in the first half of 2024 and the trend for the sector to peak during the festive season. “We estimate that both sales and new launches will exceed 300,000 units for the second consecutive year,” he said.
The luxury housing segment, especially in the range of ₹2-4 crore and above, continues to attract interest from high-net-worth individuals (HNIs) and non-resident Indians (NRIs). This demand is driven by the desire to get higher returns on investment amid global economic uncertainties. He says an emerging segment of upper-middle-class buyers is willing to allocate larger budgets to improving their lifestyle, indicating continued strong activity in the sector.
The sentiment is positive this festive season and the number of inquiries has increased. Vishwa Pratap Desu, COO-Residential, Brigade Group, says this is an auspicious time to make new investments in real estate and good sales are expected this quarter.
“Our average ticket size is ₹1.25 crore and we see high interest in the range of units costing ₹1.25-₹2.5 crore. The luxury segment of ₹2 crore and above is attracting equally good interest as market acceptance at higher ticket sizes has been good,” he said.
Praveer Srivastava, Senior Executive VP, Residential, Prestige Group, says that the real estate industry has witnessed phenomenal growth in the first half of this year and we anticipate that the growth trend will further accelerate during the festive season and register unprecedented highs. Later this year, he added.
Upcoming Launch
Demand will continue to outweigh supply to a great extent. In FY23-24, we had good demand during the festive season and some important launches. “This year, in view of the upcoming launches in Delhi-NCR, Bengaluru, Hyderabad and Chennai, we are expecting double the sales during the festive season as compared to last year,” he said.
The bulk of the demand is from the upper middle class and working professionals who are willing to purchase end-use homes in the ticket size range of ₹2-3 crore. He said luxury properties above ₹3 crore have emerged as a high-value asset class as both small and large investors are increasingly attracted towards luxury properties as an attractive investment proposition.
Naveen’s executive director S Sivagurunathan says the market is really looking up and has grown by at least 50 per cent compared to last year. Since the market is good, the budget has increased and ₹50 lakh to ₹1.50 crore is going really well.
The luxury segment has improved a lot and there is a good market in the ₹2 crore to ₹4 crore range and developers ticket sizes in the above sizes are increasing rapidly, he said.
According to Bharat M Jain, director, Arihant Foundation and Housing Ltd, while demand remains strong, supply has increased at a measured pace with new launches to meet the market needs. The decision cycle has become slightly longer due to the festive period with extended weekends and travel plans, yet overall demand remains strong and stable.
luxury housing segment
In the luxury housing segment (above ₹2 crore), he said, there has been a clear trend towards larger apartments, as affluent buyers want spacious living spaces that are a mix of quality, exclusivity and value.
Vimesh P, senior vice president, marketing, CasaGrande, “The festival season plays a significant role in shaping the real estate markets, especially in southern cities like Chennai and Bengaluru. Traditionally, festivals like Diwali are considered auspicious times to buy a home, boosting buyer sentiment, with housing demand increasing by 20-30 per cent annually during this period.
On wooing customers, CBRE’s magazine says that developers are preparing a series of attractive offers for potential home buyers. This includes EMI waiver, GST waiver and free registration and stamp duty. However, rising property prices and global uncertainties may prompt potential buyers to carefully consider their decisions as they take into account current market dynamics, he said.