In residential real estate, the excitement around this festive season seems more intense this year. And why not! According to Housing.com’s IRIS index for September 2021, the online property search volume has surpassed the historical peak of September 2020. The growth momentum of high-intent buyer activity has continued to stay above-100 mark sequentially since the last three months (July-September 2021), suggesting that the residential real estate sector has bounced back quicker post the second wave than the first.
Corroborating with the uptick in the IRIS index, Housing.com & NAREDCO’s recent survey on consumer sentiment outlook for the coming two quarters also suggests that homebuyers are interested in resuming search activity.
In fact, sales numbers for developers like Oberoi Realty, Sobha and Macrotech Developers have also gone up significantly as evidenced in their September quarter financial results.
A wave of strong revival in the country’s economic growth in the current fiscal year is an outcome of historically-low interest rates on home loans and lucrative festive offers by developers.
Financial institutions along with developers are proving to be the major drivers of housing demand. With housing prices remaining stable over the last few years, it is an excellent opportunity for both end-user customers and investors to enter the market and purchase residential properties.
The festival season is crucial for the real estate sector, and it is strongly believed that the housing sector will perform exceedingly well over the next several quarters because of the increased housing affordability and the positive sentiment vis a vis the residential real estate market.
The anticipation that sales will increase during the festival season can be attributed to the fact that, following COVID-19 first wave, people have realised the importance of owning a home and having a sense of security amid uncertainty and the transformed work culture to WFH or hybrid work model, etc. All of these have led to a V-Shaped recovery of the Indian real estate industry since May 2020 onwards.
To meet the predicted rise in demand over the festival season, a lot of builders have come with varied offers across the country, including some great events like the one by our group company Housing.com.
Housing.com is hosting a month-long online festival, “Mega Home Utsav 2021”, from October 1 to October 30th, with participation from over 150 builders across India and the online realty portal has also collaborated with over 1,500+ channel partners. Builders from major realty markets will be participating in the festival, presenting their projects and offering discounts and special offers to the attendees.
In addition, technological adoption in the real estate sector has achieved unprecedented heights since the onset of the pandemic. Furthermore, as a result of more individuals coming online, demand for property from smaller cities has increased significantly.
(By Vikas Wadhawan, Group CFO, Housing.com, Makaan.com and Proptiger.com)