High Residential Demand Brings Festive Cheers 

Festive deals and discounts available at property expos and individual offers made by developers have helped boost home sales. Both ready-to-move and under-construction homes have been responsible for driving sales. Despite limited inventory  of ready-to-move units, home buyers have shown keen interest in buying them due to the clear advantage of zero GST and no development risk. What’s more significant is the sales momentum shown by the under-construction homes, Buyers have been enamoured by new launches  as post-corona, developers have catered to choices and preferences of home buyers for spacious homes, taking care of other superior features and amenities related to wellness, home office , terrace garden etc,.From apartments, to independent floors to villas, affordable to luxury, all segments have contributed to good sales numbers.Particularly, buyers’ have shown greater interest in luxury housing. 

The largest residential market of Delhi-NCR has given impressive performance. NCR’s leading player M3M has recorded Rs 1200 crore of sales  for its luxury residential project – M3M Capital in Gurgaon. This project with 2,5 BHK -4.5 BHK homes across 13 towers , spanning 3msf of constructed space , has 1700 units with a premium 60000 sf clubhouse. Tata Value Homes has successfully sold 100 units in its newly launched phase 1 of residential project in Bahadurgarh, bordering West Delhi- New Haven , a gated community of 1,2 and 3 BHK units. Sarthak Seth, SVP and Chief Sales & Marketing Officer, Tata Realty & Infrastructure Limited (TRIL)  attributes high sales to the introduction of 1 BHK units and design to enhance health and wellbeing. Tarun Mehrotra, Regional Business Head North & East India, TRIL says that their focus on addressing home buyers’ aspirations by offering value-oriented homes with elevated lifestyles has paid rich dividends.   

UP RERA’s highest registrations ( with residential  share of 75%) of 125 projects in H1 2022, especially the spurt in the month of September , according to Manoj Gaur, President Credai NCR & MD Gaurs Group points to the huge demand for real estate, particularly residential real estate. Amit Modi, President Credai Western UP &  Director ABA Corp is expecting 36 new launches worth Rs 3648 crore in the near future. And to cash in on the huge demand, developers are giving buyers a diverse pool of options. 

While affordable and mid-segment housing has been a big bet for home buyers, this time buyers are showing substantially high interest in luxury homes as well. Compared to September 2021, the share of luxury homes in Sptember 2022 has doubled and 71% of all registered sales for homes are for spacious 1000-2000 sq ft homes.  

There is an uptick in home sales in different markets. The large residential market of Mumbai , according to Knight Frank ,has seen high property registrations of over 8600 for September 2022. Homes in the price band of over Rs 1 crore and in sizes of 500-1000 sq ft are in high demand. In Bangalore market, leading developer, Sobha Group has seen its home sales recording 13% growth to Rs 1164 crore in Q2 FY23.against Rs 1030 crore of sales in a year before period.In another South Indian market of Chennai, Casagrand Group has clocked sales worth Rs 200 crore , selling 82 uber luxury villas in its newly launched Casagrand Tranquil project. 

Riding high on connectivity , remote work  and popularity of second home/holiday home market, Tier 2 and Tier 3 cities are reporting brisk home sales. And as such developers are quick to grasp the opprtunity by launching new projects. A not for profit housing company, Shayna Foundation(Urban Axis Group)  has chalked out an ambitious plan to launch 5 lakh 2BHK and 3BHK affordable homes in Tier 2 and Tier 3 cities of Uttar Pradesh. In the first phase, it will be catering to10 towns, targeting 50000 homes.  

In view of the post-corona choice for wellness homes, home buyers are increasingly opting for hill homes. This clearly evident from a record Rs 100 crore worth of home sales at Address India Property Expo held  in Dehradun .during Navratras from 30 September to 5 October. Uttarakhand Forest Minister, Subodh Uniyal and Minister for Urban Development & Finance, Prem Chand Aggarwal were chief guests on the inaugural and conluding day of the expo organised by Address India, a unit of Ess Buildtech Private Limited. Torbit Realty Editor, Vinod Behl was the chief guest on the third day of the event.  

There were about one and a half dozen participants including Delhi’s  leading developers – DLF, M3M, Signature Global, Omaxe, IREO, Sikka Group. The Mussoorie -Dehradun Development Authority and a number of local developers paricipated in the 6-day event.In all 83 flats were sold by the participating companies. The maximum of 43 flats were sold in Pacific Golf Estate, a luxury residential project, exclusively marketed by Address India, followed by 22 in Oakwood and 18 in Kimaya Greens.  Talking about the overwhelming response to the expo, Satinder Singh Sawhney, Director, Ess Buildtech says that it is because we  have lived up to the  growing aspirations of millennials for elevated lifestyle, offering premium lifestyle products with modern amenities. Sanjay Garg, Director, Address India says that robust sales prove the growing popularity of Dehradun as a prime real estate destination for both end-users and investors. Ranbir Singh Sawhney, Director, Address India says that such good sales despite hike in interest rates goes to show that the sentiment of homebuyers remains unaffected. 

Going forrward , considering the strong trend of homeownership and the high sentiment of homebuyers, developers  are confident that the sales momentum during the fesive season will carry through in the New Year.