During the holiday season, almost one-third of home transactions are completed: Colliers

 During the holiday season, almost one-third of home transactions are completed: Colliers

Homebuyers often have a tendency to complete their real estate purchases around the holiday season by taking advantage of deals from lenders and developers.

According to a Colliers research, the fourth quarter of the year accounts for about 40% of residential unit sales annually, particularly during the holiday season when developers and financial institutions entice purchasers with offers.

According to Badal Yagnik, CEO of Colliers India, "Historically, Q4 has specified the final push to residential activity, labeled by a higher inclination of homebuyers to wrap up buying a house in the festive period and quick liquidity benefit helped by developers offering attractive discounts."

Financial institutions provide homeowners processing fee exemptions and one-time interest rate reductions of a few basis points, while developers offer discounts, flexible payment plans, and cheaper floor rise costs. The examination of patterns in eight major zones revealed that the holiday season aims to give residential real estate sales in India one more push.

According to Yagnik, in the last quarter of the year, close to 40% of the yearly residential units sold are closed. "According to industry consensus, housing sales in 2023 should already be approaching 2022 levels, and with the current holiday season, 2023 sales should rise by 20 to 30 percent over 2022."

Ahmedabad, Bengaluru, Chennai, the National Capital Region, Hyderabad, Kolkata, Mumbai, as well as Pune were the eight cities that were included in the study.

When to make real estate acquisitions

The date of property acquisitions is mostly determined by circle rates and property guideline values, which are similar to registration fees. According to the data, a typical Indian homebuyer accounts for these regulatory changes, which are more common around the end of the calendar or fiscal year, and advances or refrains from outright purchases appropriately.

The current holiday season, which culminates on November 12 with Diwali, is expected to provide residential real estate sales, which have been rising all year, even more momentum. The season's must-haves include brand-new releases, steep discounts, partnerships between developers and home furnishings retailers, creative payment solutions, and focused advertising efforts.

While house loan EMIs do influence home purchase behavior, Colliers found that the effect was less noticeable for aspirational buyers. A poor association between house loan disbursements and variations in the repo rate suggests that the feeling of identity and belonging that comes with home ownership, rather than the transient financial rewards brought in by interest rate fluctuations, governs residential sector activity in India.

It said that buyers who are sincere about their intentions would probably go above and beyond their means to buy properties that fit their ideal identity and way of life.

During the course of a house loan, a buyer often experiences at least three business cycles, and the advantages resulting from changes in interest rates gradually become more logical.

Because interest rate patterns are cyclical, end users are less susceptible to changes in interest payments over a ten- to twenty-year timeframe. According to Vimal Nadar, Senior Director as well Head of Research at Colliers India, "homebuyers are more likely to change the location, stage of construction, ticket size, unit size, preference of the developer, and bouquet of amenities in the housing society than they are to rush or delay the purchase decision itself."

Due to the monsoon and other circumstances, real estate sales often peak in the fourth quarter due to holiday demand. The July–September season is typically the lowest.

According to Mohit Jain, Managing Director of the Indo-Japanese real estate company Krisumi Corporation, this year would be no different.