Housing developers are ecstatic with the positive house buying sentiment this festive season record sale this calendar year with both sales and new launches likely to exceed 300,000 units for the second consecutive year.
There is also a growing demand among consumers for buying premium//luxury houses priced above ₹2 crore this festive season. With several new properties being developed across the country, consumers have a wide range of choices depending upon their budget, say developers.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, says that this festive season is expected to see a surge in new property launches, a trend consistent with previous years. Given the strong performance in the first half of 2024 and the sector’s propensity to peak during the festive season. “We anticipate that both sales and new launches will exceed 300,000 units for the second consecutive year,” he said.
The luxury housing segment, particularly in the ₹2-4 crore and above range, continues to attract interest from high-net-worth individuals (HNIs) and non-resident Indians (NRIs). This demand is driven by a desire to fetch higher return on investments amid global economic uncertainties. An emerging segment of upper-middle-class buyers is increasingly willing to allocate larger budgets to enhance their lifestyles, indicating sustained robust activity in this space, he says.
The sentiment this festive season is positive and there is an increase in the number of enquiries. This is an auspicious time for making new investments in real estate and good sales expected this quarter, says Viswa Desu Pratap, COO-Residential, Brigade Group.
“Our average ticket size is ₹1.25 crore and we see a high interest in the category of units costing ₹1.25-₹2.5 crore. The luxury segment of ₹2 crore and above is equally attracting good interest as the market acceptance on the higher ticket size has been good,” he said.
Praveer Shrivastava, Sr Executive VP, Residential, Prestige Group, says the first half of this year has witnessed an astounding rise in the real estate industry and we predict that the growth trend will only rise further during the festive season and record unprecedented heights in the latter half of this year, he adds.
Upcoming launches
The demand will continue to heavily outweigh the supply by a significant margin. In FY23-24, we had a healthy demand and some significant launches during the festive season. “This year, on the back of upcoming launches in Delhi-NCR, Bangalore, Hyderabad and Chennai, we are expecting to double the sales during the festive season as compared to the last year,” he said.
The bulk of the demand is from the upper middle-class and working professionals who are keen to purchase homes for end-use in a ticket size range of ₹2–3 crore. Luxury properties above ₹3 crore has emerged as a high-value asset class as both small and large investors are increasingly drawn to luxury properties as a lucrative investment proposition, he said.
S. Sivagurunathan, Executive Director, Navin’s, says that the market is really looking up and when compared to last year it has grown at least 50 per cent more. Since the market is good the budget has grown and ₹50 lakhs to ₹1.50 crores is really doing good.
Luxury segment has improved a lot and ₹2 crore to ₹4 crore has a good market and the developers ticket size in the above size are moving fast, he added.
According to Bharat M Jain, Director, Arihant Foundations & Housing Ltd, while the demand has remained strong, supply has grown at a measured pace, with new launches aligned to meet market needs. The festive period, coinciding with extended weekends and travel plans, has led to slightly longer decision cycles, yet overall demand remains robust and steady.
Luxury housing segment
In the luxury housing segment (above ₹2 crore), there has been a clear trend toward larger apartments, as affluent buyers seek expansive living spaces that blend quality, exclusivity, and value, he said.
On wooing customers, Magazine of CBRE says developers are preparing an array of appealing offers aimed at prospective homebuyers. This includes EMI waivers, GST exemptions and free registration and stamp duty. However, rising property prices and global uncertainties may prompt potential buyers to carefully consider their decisions as they weigh the current market dynamics, he said.