Diwali: A Game Changer for Indian Real Estate?

Diwali is only a few days away and the festive season holds hope for many realtors as well the other major ventures of the country.

Diwali has been one of the predominant sales seasons of the yesteryears, however with pandemic pulsating and piercing around the country's economic stability, the question of it being a game-changer is being examined by some of India's top realty experts like BS Nesar, Executive Director of Concorde Group, Ramji Subramaniam, MD of Sowparnika Projects and Manjusri MRICS, of HM Constructions.

Post Covid-19 Market Conditions

COVID-19 and the economic lockdown is one of the major paradigm shifts the world had to face since the cold war. Nothing in the modern world has brought the whole humanity to its knees like the pandemic. The very thought of outdoors became a threat, and the whole version of normal is now constricted to the four walls of our home!

However, the digital world thrived while the rest of the industries suffered a massive setback. Also, the pharmaceutical and door-to-door delivery business has made rapid and unprecedented gains.

Real Estate Industry was perhaps one of the hardest-hit industries in India. The urban regions suffered more, as the lockdown meant the lack of raw materials and workforce because of the mass migration of workers back to their villages.

The Needs of Home Buyers during COVID-19 Era

The pandemic has also influenced the taste of Home Buyers to a great extent. The demand for Ready to Move In and Affordable Housing has risen substantially. The people had learned the true value of a home these days, and a large faction current home seekers used to live in rental homes.

From being seen as a luxury and an investment to be bought off in one's later years, the appeal of "one's own home" has gained massive popularity.

Rentals thrived till date in the urban circles because of the traditional thought of home is a luxury and any roof over the head would suffice for shelter. But the months spend inside rentals made them realise that it can never be counted as the real thing, after all, it's not their own.

Diwali: A New Hope?

Diwali is said to bring in a rope of fresh air to the Indian real estate. Every festive season instigates a sense of good hope, and many among our populace consider it to be an auspicious time to start something afresh. Buying properties is no different, as festive seasons saw some of the greatest transactions during these festive quarters and adjacent months. But Covid-19 and the subsequent lockdown had made the trend tread far off the usual course, however, as the cases are down now, Diwali is said to be the time when the slumbering titan of real estate wakes up. Let's read what the experts have to say about these:

"There was a lull in the first quarter because of the lockdown, a lot of pent up demand is coming back to the market," said BS Nesar, he also added that since the interest rates are at an all-time low, the attractive rates for the houses, the stamp duty reduction by state governments, the festive season will beat pre- covid numbers.

According to Manjusri of HM, the investment potential of India has grown within these months, as there's 4.8 Billion of institutional fund flow coming into the general realty and infrastructure sectors. This shows immense promise for the future.

However, according to Ramji Subramaniam, the real game-changer would be the post-Diwali sales tenure, as major cities like Bangalore with a huge migrant population would return back to natives and once they get back, the sales will be boosted till Christmas and New Year season.

The Major Offers by Developers

Most of the developers are bringing in highly attractive offers this season to spark up the sales further and thus gain the advantage of momentum back to the market.

Concorde believes in providing value-added services such as providing maintenance and giving out smart home feature for another one of their projects.

Perhaps one of the most innovative offers would be from Sowparnika Group called "SHIELD". "SHEILD" here is armour against corona, it helps out homebuyers to get their dream home during this pandemic. The homebuyers can pay just the initial 5 to 6 percent of the total amount and pay nothing till possession. And the shield protects them during post possession period as well. If incurred job loss in this uncertain time, developers would pay off the 6 months EMI. The offer will last till New Year.

HM Constructions too brings out a unique proposal titled " Be a 10, not a Tenant. Within this offer, the booking amount starts at just Rs 10,000 and the downpayment is 10% and move in within 10 days. And for a total of 10 months, there's no EMI and a bonus rental.

Conclusion

Real Estate sector is slowly climbing back up to its throne of glitz and glamour after a hiatus caused by the pandemic. And all fingers point to Diwali being the prince charming who shall wake her up to acclaim her glory!

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