Festive Home Buying: A Financial and Emotional Boost for the Real Estate Market
As the festive season approaches, the Indian housing market is experiencing a surge in demand. Discover how favorable economic conditions, government schemes, and cultural traditions are driving this trend.
Festival SeasonReal Estate MarketHome BuyingGovernment SchemesEconomic ImpactReal Estate MumbaiNov 06, 2024
In India, the festive season is often associated with new beginnings and significant purchases. This cultural backdrop, combined with enticing financial offers, has resulted in a boost in property sales. Key real estate players are focusing on enabling the Economically Weaker Section (EWS) and Low-Income Groups (LIG) to buy homes, especially in Tier 2, 3, and 4 cities.
Destinations such as Goa, Nainital, Mukteshwar, and Puri see a significant influx of tourists during the festive season. Owning a holiday home in these popular areas provides an opportunity to generate rental income. Properties in tourist hotspots generally increase in value over time, and this trend often accelerates during festival periods. Purchasing a holiday home at this time allows for capital appreciation, especially as demand for vacation properties continues to rise.
Festivals are traditionally celebrated with family and friends, and owning a holiday home enables individuals to create lasting memories by hosting gatherings in picturesque settings. For example, one might celebrate Diwali in a hilltop villa in Nainital or spend Christmas at a beachside house in Goa.
Government initiatives, such as PMAY 2, are also playing a key role in supporting the housing market. The scheme aims to increase the availability of affordable housing and simplify access to home loans for qualified buyers. By extending support to both urban and rural areas, PMAY 2 is enhancing the housing market by driving both demand and supply.
Recent reports indicate that affordable housing, priced under INR 40 lakh, and mid-range housing, priced between INR 40 lakh and INR 80 lakh, have become the most preferred segments among developers. Together, these segments accounted for 62% of new launches in 2023, up from 54% the previous year. On the other hand, the luxury and ultra-luxury housing segments experienced a decline, with their share dropping to 19% of new launches. This shift reflects a growing preference for accessible housing, which is driving demand for financing solutions.
Additionally, women buyers are also playing an increasingly important role in the housing market, with reports showing that they are responsible for 31% of property purchases in India’s major cities.
Aside from the financial benefits, buying a home during the festive season holds emotional and cultural significance. This time of year is often seen as an opportunity for new beginnings, and for many, homeownership is a key part of this process. For prospective homebuyers, the festive season presents an ideal moment to take action. With the housing market in full swing and housing finance companies offering competitive terms, the path to homeownership has never been more appealing. The alignment of financial offers and cultural factors makes this period an opportune time for many to realize their dreams of owning a home.
Frequently Asked Questions
Why is the festive season a good time to buy a home?
The festive season is a good time to buy a home due to a combination of favorable economic conditions, attractive financial offers, and cultural significance. The Reserve Bank of India’s stable policy rate, competitive home loan offers, and the cultural tradition of new beginnings during festivals make it an ideal time for homebuyers.
Which government schemes are supporting the housing market?
Government schemes like PMAY 2 (Pradhan Mantri Awas Yojana) are supporting the housing market by increasing the availability of affordable housing and simplifying access to home loans for qualified buyers. This scheme extends support to both urban and rural areas, driving both demand and supply in the housing market.
What is the trend in property prices during the festive season?
Properties in tourist hotspots tend to increase in value during the festive season due to a significant influx of tourists. This trend accelerates during festival periods, making it a strategic time to purchase a holiday home for potential capital appreciation.
Who are the key players in the housing market during the festive season?
Key real estate players and housing finance companies are focusing on enabling the Economically Weaker Section (EWS) and Low-Income Groups (LIG) to buy homes, especially in Tier 2, 3, and 4 cities. These companies are offering competitive terms and attractive financial offers to attract more homebuyers.
How are women impacting the housing market?
Women are playing an increasingly important role in the housing market, responsible for 31% of property purchases in India’s major cities. Their involvement is driving demand and contributing to the growth of the housing sector.
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