Planning to buy a house this Diwali? Here are tips to get the best deal

The festive season in 2023 is set to break the three-year record in residential sales, exceeding the 1.5-lakh-unit mark in H2 of 2023

It is believed that investing in anything new on Diwali, including real estate, is bound to grow and prosper. Steady interest rates and the ongoing festive season sentiment are expected to lead to housing sales in 2023 outpacing last year's numbers. This is largely on account of buyers continuing to aspire for home ownership and many wanting to upgrade to larger and spacious homes.

The festive season in 2023 is set to break the three-year record in residential sales, exceeding the 1.5-lakh-unit mark in H2 of 2023, a report by real estate consultancy CBRE said.

Traditionally, the real estate sector experiences a surge in sales during the October-December quarter, owing to the increase in discretionary spending by consumers during the festive season. This seasonal uplift typically sets the tone for a robust performance in the subsequent January-March quarter as well. This year is no exception. The outlook remains promising, particularly in light of the Reserve Bank of India's (RBI) decision to maintain the repo rate at 6.5 percent. This move allows banks to offer attractive incentives, thereby stimulating property purchases during the festive period.

”Given the existing high demand for residential real estate, the current economic climate is highly conducive to the continued growth of the Indian property market. To capitalise on this opportunity and further stimulate buyer interest, several real estate developers have already unveiled a variety of compelling offers. These include not only interest subsidies and cash-back deals but also unique value-adds like gold and other consumer goods,” said Dhruv Agarwala, Group CEO, Housing.com, Proptiger.com and Makaan.com.

 The rationale behind buying property

If you are thinking of buying a residential property to make a fast buck, forget it! No appreciation is expected in the short term. Also, do not invest in places that are touted as future locations.

However, if you still want to make some money, you may consider putting in money in commercial properties. “There is traction in the market for income producing, already leased commercial properties,” said a property consultant.

Some offers this festive season

Ashar Group has launched a festive campaign called Season of Smiles featuring offers across three projects. “The property prices in Mumbai have increased by an average of 5-7 percent compared to last Diwali, due to rising demand, improved infrastructure, faster growth of the economy, and an increased purchasing power of home buyers,” said Ayushi Ashar, director at Ashar Group and managing committee member at MCHI-CREDAI.

Rohit Gupta, CEO of Mantra Properties, said that the company has come up with the Mantra 3D carnival where the company is offering several payment schemes, gifts and vouchers worth over Rs 1 lakh. These offers are valid from November 10 to December 10.

Evaluate festive offers

Evaluate festive offers and freebies on their intrinsic value for you, rather than their flashiness. You may not really need a gold coin, probably already own a decent car, and a family holiday abroad may not make much sense if you would rather stay put and focus on your career for now. However, a free parking space, waived stamp duty and registration fees and maintenance-free periods do add to your savings, and therefore to the value of the deal. Air conditioners, modular kitchens and furnishing are also expenses you may incur on the property sooner or later, so getting them free now adds real value as well, say experts.

Freebies, according to some experts, only work in the mid-income housing segment if they actually add value to the property or lighten the financial burden on the buyer. Conversely, offering lifestyle oriented freebies is often effective when it comes to high-end premium homes.

A free parking space is what you may need in any case. So would white goods. But while evaluating a deal that comes with free air conditioners, fans, lights, and microwave ovens, always check what the cost of the apartment would be without the freebies and then assess whether you would want the house with the goods or without them, as some people may already own them, they added.