Home sales may rise 15% in Q4 with boost from festive bookings

Buoyed on the enthusiasm of homebuyers and attractive festive offers, the residential real estate market in India could register up to 15 per cent year-on-year growth during the ongoing October-December quarter. As per latest estimates, home sales during the festive weeks have given major impetus to the growth of the sector as homebuyers’ expectations were duly matched by new offerings from the realtors.

According to Ashwinder R Singh, CEO-Residential at Bhartiya Urban, the festive season is expected to lead to robust home sales. “Projections indicate that residential unit sales in India could exceed 150,000 units during this period,” he said.

“Historically, festivals frequently ignite property purchases, driven by the belief that these occasions are auspicious for investments. Developers capitalise on this by presenting enticing offers and flexible payment solutions to attract potential buyers. A significant driver of housing demand is the rising importance of property ownership, buoyed by consumer confidence in the broader economic climate,” said Aman Sarin, Director & CEO of Delhi-based developers Anant Raj Ltd.

Estimates by Anarock Research suggests, home sales during the 40-dd days window between early-October and late-November, 2023 could rise by up to 15 per cent over the festive period in 2022. “We have definitely seen a major surge in both new launches and housing sales this festive season. As per out estimate, last year in the festive quarter of October to December we saw as many as 93,000 units launched across the top 7 cities. This year, we estimate at least 10-15% yearly growth, said Anuj Puri, Chairman, Anarock Group.

According to Singh, tightened demand for homes could lead to a 2-3 per cent surge in average home prices in the country during the period. “Smaller cities in Tier 2 and 3 are likely to witness a significant surge in housing demand as buyers seek a better quality of life and not just affordability. Additionally, online real estate platforms are projected to play a larger role in facilitating property transactions during the festive season, reflecting the increasing adoption of digital channels for property search and purchase. Overall, the outlook for the housing sector during the festive season of 2023 is positive, supported by strong demand, favourable economic conditions, and government initiatives,” he added.