This festive season gift yourself a home!
As Ganesha, the Lord of Good Tidings, makes his annual arrival, ushering in the festive season, it is an ideal time to celebrate by buying your new home
What makes this period roughly between the end of August and the end of November special for most Indians? In the pre-industrial age, it had as much to do with economic factors as it did with cultural reasons. In an agricultural society, a good monsoon is the single most important factor for a good harvest. Ganesh Chaturthi, which usually comes towards the end of the monsoon season, ushers in a season of plenty. A good harvest by the end of November (when Diwali is celebrated) brings economic prosperity.
Even today, as India races to become a USD 5 trillion economy, good monsoons are a critical positive macroeconomic indicator. They boost rural consumption and, consequently, the whole economy.
For home buying, of course, cultural imperatives are at the forefront when it comes to timing.
Traditionally, before the Internet made things simpler, families would begin their house hunt during summer vacations. By the time they had finally seen all the possible options, it would be close enough to the festive season for them to wait until an auspicious date to conclude the deal and then move in by Dusshera or Diwali for a truly special celebration.
While several developers tend to offer special deals during the festive season, the savviest buyers know that a few fleeting discounts should not be the deciding factor while making big-ticket purchases such as property. They recognise that it is more important to consider issues such as the company’s reputation, the quality of the project and whether they will receive timely delivery.
?With the pandemic receding, this year’s festive season has particular significance for home buyers. The pandemic underscored the need for stability, security and a quality home that is safe and meets the space requirements of everyone in the family – senior citizens, working parents and kids. This sentiment was reflected in a YouGov international survey in 2021, where India was one of the few markets surveyed; the study revealed that one person in seven (about 14%) planned to purchase a home within a year.
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?Interestingly, millennials, who were supposed to be averse to the idea of buying a property, were no exception to this rising desire to own a home. According to some real estate portals, this segment today constitutes the bulk of the buyers.
?Surveys and reports by most independent real estate consultants confirm this continued bullishness in the residential property markets. According to property consultant Anarock, housing sales this year across seven major cities — Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad and Pune — will cross 2,61,358 units recorded in 2019, the pre-pandemic level.
?Knight Frank, another consultant, says that sales in H1 2022 have convincingly broken through and reached the highest level since H1 2013. This positive trend is likely to continue despite the recent increase in home loan rates. This is because, generally, an increase in home loan rates translates into an increase in tenure rather than an actual increase in EMI, effectively subduing its impact to some extent. Given that the Reserve Bank of India has kept the FY 2023 GDP growth estimate constant, residential demand should not be impacted materially in 2022.
?According to Knight Frank, the Pune residential market has seen a robust performance in H1 2022, with sales growing steadily by 25% Year-on-Year (YoY), recording 21,797 units sold in H1 2022. This was the highest half-yearly sales witnessed since 2012.
?Another important aspect that most independent consultants point to is that inventory levels are low. This means that if you delay your property buying decision, you may not get the best option. So, don’t wait anymore. Take a plunge this festive season, and gift yourself a new home!