The festive season of Diwali and Dhanteras is considered one of the most auspicious in Indian households. Another reason why people make expensive purchases is the supposition that this festive period brings more luck, wealth, and prosperity. And, what better way to prosper than with the purchase of a dream home?
If you look at the real estate scenario of the last few years or so, you would know that the growth of real estate sector in India has been falling significantly year on year. In fact, plenty of builders and developers have been running on losses as their inventories kept on piling up, which was mostly because of the rising real estate prices and the fall of buyers’ interest owing to this increase.
However, despite the market’s freefall, there’s also been a trend that has slowly risen. This trend is that buyers were more open to buying property during the festive period as they considered it to be the right time for religious reasons.
Prospective home buyers and developers have been waiting for the festive season as it is going to be an advantageous period for both of them. While builders are looking forward to get rid of their inventories, buyers are looking for slightly lower property prices. To top it off, the new RBI governor Urjit Patel introduced yet another repo rate cut which is likely to bring down the cost of purchasing a home by a huge margin.
As builders are already in a sticky situation, they will be more willing to budge and come up with slightly affordable offers. In that, they are likely to bring down the price of a property by a few notches, so as to make the deal more palatable for the buyers. Besides these, builders are likely to offer other benefits like free parking space, free maintenance, gold coin, or lucky draws to entice customers into thinking that they are getting a good deal.
Depending on how the market performs, interest rates either goes up or down. During the festive season however the situation is different as such instances are essential to jumpstart a relatively slumbering economy. This is why banks and NBFCs will be on high alert and will come up with interest rate cuts to attract prospective home buyers. Apart from cutting the rates, they are also likely to offer deals with no processing fee or instant approvals.
While India remains a secular nation for the most part, most of the decisions taken here are still ruled by religious sentiments. The festive season is one such period where religious feelings fly high. This is also why builders are likely to time their launches or offer ready-to-move house to correspond when the festivities are about to begin. So, you can expect this number to be considerably high in the coming few weeks or so.
All in all, the festive season isn’t just going to bring light and happiness to millions of households in India, it is also likely to add the much-needed reinforcement to improve the state of our economy.
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