New Delhi [India], October 19 : As the festive season approaches, India's housing market is set to experience a significant boost in demand, building on the strong sales momentum of 2023 and the first nine months of 2024, according to CBRE report.
Traditionally seen as an auspicious time for home purchases, this period is expected to attract first-time buyers who have previously hesitated, adding to the sector's growth prospects.
The positive homebuying sentiment has persisted throughout 2024, with over 150,000 units sold in the first half of the year, reflecting an increase over the same period in 2023.
Despite this upward trend, potential buyers are expected to proceed cautiously due to rising property prices and global economic uncertainties, carefully weighing current market dynamics before making decisions.
The luxury housing segment continues to drive demand, especially in the Rs 2-4 crore and above range.
High-net-worth individuals (HNIs) and non-resident Indians (NRIs) remain key players, motivated by the opportunity for higher returns on investment amid a turbulent global economy.
Additionally, an emerging group of upper-middle-class buyers is showing a willingness to allocate larger budgets for lifestyle upgrades, signaling sustained activity in the luxury market.
In anticipation of increased demand, developers are rolling out enticing offers to lure prospective homebuyers.
These include EMI waivers, GST exemptions, and complimentary registration and stamp duty, along with additional perks like modular kitchens, electronics, free parking, and even furnished apartments. Some developers are collaborating with banks to offer fixed interest rate schemes for a set period, adding to the festive appeal and easing concerns over rising loan costs.
New property launches are also expected to surge, in line with trends seen in previous years. With the housing market's strong performance in the first half of 2024, the festive season could push total sales and new launches beyond the 300,000-unit mark for the second consecutive year.
While higher loan rates pose a challenge, homeownership remains a priority for many buyers. Data from the Reserve Bank of India (RBI) shows a significant 40 per cent increase in home loan deployment, highlighting the resilience and confidence in the housing sector.
However, credit providers must tread carefully to manage Non-Performing Assets (NPAs) and ensure the market remains stable.
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