Festive Surge in Real Estate, Autos, and Consumer Durables: GST Cuts and Positive Sentiment Drive Growth
From housing projects to car showrooms and smartphone stores, consumer spending is on an upswing this festive season. Industry experts say GST cuts, festive discounts, and the growing use of EMIs are helping customers upgrade their purchases and sustain demand across categories.
Festive demand has picked up strongly across sectors with GST cuts, easy financing options, and upbeat consumer sentiment fuelling a surge in sales. Experts told CNBC-TV18 that real estate, automobiles, and consumer durables are witnessing robust growth this Navratri and expect the momentum to continue till Diwali.
Manan Shah, MD of MICL and Jt. Secretary at CREDAI, said the real estate sector is clearly benefiting from the reduction in GST rates. “Post-GST, people are seeing some sort of cost saving, whether it’s in the consumer sector, automobiles, or real estate. Cement, for example, has gone down from 28% to 18%. The overall sentiment during the festive season has always been positive, and this year we are seeing a good boost across both affordable and luxury housing,” he noted. Shah added that even with the RBI holding rates steady, housing momentum is intact and developers are expecting a rise in conversions during this period.
Automobile dealers are also reporting brisk sales after the festive price cuts. Vinkesh Gulati, Director of United Automobiles and former President of FADA, said, “These have been the best nine days, and all the showrooms in India are actually jam-packed for vehicle deliveries.” He explained that GST cuts and festive schemes together provided a “big bonanza” for customers. According to him, auto sales are recording double-digit growth across segments. “We’ve seen a lot of customers upgrading. Even a difference of ₹50,000 to ₹1 lakh due to GST made it feasible to move to the next variant,” Gulati pointed out.
Consumer electronics and smartphones too are seeing strong traction. Varun Mishra, Senior Analyst at Counterpoint Research, said sales across categories like TVs and mobiles have jumped. “We’re seeing double-digit growth across the overall market. The timing of the GST cut just before the festive season has instilled positive sentiment. Discounts are more aggressive this year, and premiumisation is strong. Two out of three purchases in the premium segment are now happening through EMIs,” he said.
The surge in festive buying comes as markets across the country remain crowded ahead of Dussehra. Automobile companies have reported a big rise in enquiries and bookings in the past week, while e-commerce players like Amazon and Flipkart are reporting 30% higher sales compared to last year. Jewellery stores are also witnessing heavy footfall despite gold prices hitting record highs, underlining the strength of consumer appetite during the festival season.
