by Manju Yagnik, Vice Chairperson, Nahar Group and Senior Vice President of NAREDCO– Maharashtra
As we move through the most awaited time of the year, the festive season, it is not just the aroma of freshly baked sweets and the twinkling lights adorning our homes that fill the air with joy. For those involved in the real estate industry, it is also a time of great optimism and anticipation. The festive season has traditionally been known to bring cheer to the real estate market and there are several reasons why this trend continues to hold.
The mood that the holidays inspire prospective homebuyers is one of the main reasons they have such a good effect on the real estate market. Celebrations, getting together with loved ones and making lifelong memories are all part of festivals. The idea of having a new house – somewhere to preserve those unique moments – becomes very alluring at this point. The joyous spirit of the holiday season frequently results in an increase in house purchases.
Additionally, throughout the holiday season, developers and builders take advantage of this chance to attract potential customers by introducing festive deals, discounts and special promotions. These deals may include additional features and customizations along with lower mortgage rates, stamp duty waivers and decreased down payments. These incentives encourage people to make decisions during this auspicious time by creating a sense of urgency and making it easier for them to realize their ideal home.
The festive season also provides a unique atmosphere for property transactions. It is during this time that we see an increase in property exhibitions, home tours and marketing events. These events create an opportunity for prospective buyers to physically visit the properties, see them decorated for the festive season and get a real feel for what their life could be like in these homes. The visual appeal of properties during the festive season is often enhanced as developers go the extra mile to decorate show homes in a way that resonates with the cultural and emotional significance of the season. This experience can be a game-changer for homebuyers, making it easier to decide.
Another aspect of the festive season that significantly impacts the real estate market is the availability of funds. Many people receive bonuses, incentives or gifts during this time, often providing them with the financial cushion they need to invest in a new property. Additionally, it's a time when many families pool their resources for major expenses and buying a home is often high on the list. This access to funds, combined with attractive offers from developers, becomes a powerful catalyst for real estate transactions.
Additionally festive season is considered an auspicious time for beginning new ventures and this belief extends to buying a new home. Many cultures and traditions encourage significant life decisions during this time. For example, in India, the festival of Diwali (plus Dhanteras) is associated with the purchase of gold and property, as it signifies prosperity and wealth. This deep-rooted belief in the auspiciousness of the festive season is another reason why it brings cheer to the real estate market.
The festive season is not only a boon for buyers but also for developers and builders. This period often marks a peak in sales, which can significantly impact the revenue and profitability of real estate companies. It allows them to clear existing inventory and plan for future projects with renewed enthusiasm. The revenue generated during the festive season often provides financial stability to execute larger projects and invest in innovative designs and technologies.
While talking about the benefits of the festive season for the real estate market, we also need to talk about the drawbacks. Among these challenges is the increasing competition in the market. It becomes essential for developers to differentiate their goods and come up with a unique selling proposition as everyone is fighting for the attention of potential customers. In this competitive atmosphere, those who can do it successfully, frequently win.
Moreover, the increased demand during the festive season can also pressure the supply chain. Ensuring timely deliveries and completion of projects is crucial to meeting the expectations of buyers who want to celebrate their first festive season in their new homes. Developers must have a well-planned strategy to address these logistical challenges.
In a nutshell, the real estate market is positively impacted by holiday seasons; there is no doubt about that. The positive outlook, the draw of exquisitely furnished homes, the promise of the season and the special deals combine to create an ideal storm for a jump in real estate sales. Anyone looking to make one of the most important decisions of their lives, buying a new home should seize this opportunity.
This year there is the added attraction of one of India’s unifying religions – Cricket – having its own homecoming with the ICC Men’s Cricket World Cup being held across India, bang in the middle of the festive season. Therefore, homebuyers could have an added incentive to buy their brand new homes while celebrating the wins of their favorite cricket team.
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