Diwali set to light up real estate sales; inquiries up by 15-20%: Developers

Festive season set to boost real estate sales, inquiries surge by 15-20 percent: Experts

Real estate companies expect a surge in sales this Diwali, as developers and experts note a 15-20 percent rise in property inquiries and transactions during the ongoing festive season.

Experts said attractive interest rates on home loans and the cultural inclination to make significant investments such as buying real estate during Diwali are adding to the sales glitter.

G Hari Babu, national president of the National Real Estate Developers Council (NAREDCO) said that stabilising interest rates and favourable conditions are encouraging homebuyers to make their long-awaited decisions about property purchases.

“This Diwali season, housing demand has picked up, with a potential boost in sales by around 15 percent. The festive period has created an optimistic environment, with more people looking to take advantage of these opportunities,” Babu told Moneycontrol.

Babu said that this festive season, the luxury market was also doing well with wealthy buyers, including both HNIs (High Net-worth Individuals) and NRIs, investing in high-end properties in cities and popular second-home spots.

The demand is expected to stay strong through the festive season, he added.

He said that to further increase demand, developers could focus on offering better financing options and discounts, as well as simplifying the loan approval process and reducing stamp duty or registration charges.

Developers and market observers in Mumbai said that inquiries have seen an increase due to the festive season, although incentives are largely absent in the luxury and upper-middle-income segments.

"We have noticed more inquiries in the luxury segment, but discounts are not there because those do not amount to anything substantial in the large ticket segment. Some developers have offered payment plans, or gifts such as phones, in the slightly lower-ticket segments," said a real estate broker in the Mumbai region.

Manju Yagnik, Vice-Chairperson of Mumbai based Nahar Group, said Diwali brings a substantial uptick in the real estate market as developers offer unique incentives such as flexible payment plans creating an appealing environment for buyers.

“Property inquiries and transactions typically rise by 15-20 percent during this season, supported by attractive interest rates on home loans and the cultural inclination towards making prosperous investments. Particularly in metro cities, new projects in premium and mid-segment housing add energy to the market. This alignment of cultural significance and financial benefits makes Diwali an ideal time for buyers to invest in residential and commercial properties,” Yagnik said.

Delhi NCR market also witnessed a surge in buyers’ sentiment as inquiries about residential real estate witnessed an uptick of about 20 percent.

According to a report by InvestoExpert, a real estate consultancy in NCR, up to 65 percent of potential buyers are actively considering real estate investments during the 2024 festive window, compared to 45 percent last year.

The report highlighted that developer discounts, government policies, and digital innovations drive 20 percent growth in real estate sales.

Experts said that the rise reflects the combination of economic resilience, favourable policies like stable repo rates by the Reserve Bank of India, Pradhan Mantri Awas Yojana extension, and ongoing infrastructure developments across metro and Tier-II cities.

Vishal Raheja, Founder & MD, InvestoXpert, said, “The festive season of 2024 has infused a renewed sense of optimism among homebuyers. With a combination of favourable market conditions and improving consumer sentiment, we are witnessing a surge in property inquiries. This festive period is not just about buying homes but also about making long-term investments in a stable and appreciating asset.”

Experts said there was a shift in consumer preferences, with buyers showing interest in mid-segment properties priced between Rs 50 lakh and Rs 1 crore. Meanwhile, luxury housing continues to draw affluent buyers, particularly in metro regions like Delhi NCR, Bengaluru, and Mumbai. The premium properties segment saw around 14 percent rise in inquiries.