As the festive season approaches, a recent CBRE report reveals that India’s housing market is poised for a remarkable upswing, building on the strong sales momentum of 2023 and the first nine months of 2024. This period, traditionally regarded as auspicious for home purchases, is set to draw in first-time buyers who have previously held back, further enhancing the sector’s growth potential.

Rising Homebuying Sentiment Fuels Sales

Homebuying sentiment has remained robust throughout 2024, with over 150,000 units sold in the first half of the year—an impressive increase compared to the same timeframe in 2023. However, as property prices rise and global economic uncertainties linger, potential buyers are likely to adopt a cautious approach, carefully evaluating market conditions before making commitments.

Luxury Segment Thrives Amidst Market Dynamics

The luxury housing segment continues to drive market demand, particularly for properties priced between Rs 2-4 crore and above. High-net-worth individuals (HNIs) and non-resident Indians (NRIs) are key contributors to this trend, attracted by the prospect of higher returns on investment in a turbulent global economy. Moreover, an emerging class of upper-middle-class buyers is increasingly willing to invest in lifestyle upgrades, indicating sustained activity in the luxury sector.

Developers Roll Out Attractive Offers

In anticipation of increased demand, developers are launching a variety of enticing offers to attract prospective buyers. These promotions include EMI waivers, GST exemptions, complimentary registration, and stamp duty, along with added incentives such as modular kitchens, electronics, free parking, and even fully furnished apartments. Some developers are also partnering with banks to provide fixed interest rate schemes for a specified duration, enhancing the festive allure and addressing concerns over rising loan costs.

Anticipating a Surge in New Launches

As seen in previous years, a surge in new property launches is expected to accompany the festive season. With strong performance indicators from the first half of 2024, total sales and new launches could surpass the 300,000-unit mark for the second consecutive year.

Homeownership Remains a Priority Despite Challenges

Although higher loan rates present challenges, homeownership remains a top priority for many buyers. Recent data from the Reserve Bank of India (RBI) indicates a significant 40% increase in home loan deployment, showcasing resilience and confidence in the housing sector. Nonetheless, credit providers must navigate these dynamics carefully to manage Non-Performing Assets (NPAs) and maintain market stability.