Over the past few years, the real estate market in India has experienced many ups and downs; however, the pandemic has brought about the much-needed shift that the sector was longing for.
So for those who need to invest, the best time to shop for shoes, accessories, or bags is during the festival season. Almost every store offers discounts. As this is a fortunate time when you want to feel and look great, the price tempts large crowds to the stores, where they browse shops to find the greatest deal. Throughout this season, the market expands to new heights.
Also, Did you know that the start of the festival season is a great time to buy real estate? You should consider a number of considerations while purchasing real estate during this period, in addition to the fact that it is fortunate. Banks often issue various loans to satisfy the curiosity of buyers, while contractors also provide clever offers and payment plans.
Why is real estate the most profitable gift?
Real estate investments typically involve large sums of money, making people hesitant to spend it suddenly and necessitating the use of more compelling justifications than festivals. However, let’s examine the reality. During the current festive season, most of us refurbish our entire home, purchase smartphones and other high-end electronic devices for ourselves, clothing, jewellery, and gifts for friends and family. A few of us may also purchase luxury vehicles and other pricey gifts this festive season. A new property will obviously cost much more if we compare the costs, but it makes more sense to invest the money in a new venture with a speedy return.
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The Festive Season Deals :
- For Indians, the celebration of every event is just as special as purchasing a home, gold jewelry, or a new car. When making a new purchase, they frequently wait for the most favorable moment. Buying property during the festive season is perhaps one of the best events every year. Many homebuyers consider the festival more auspicious and favorable.
- The three main factors that drive most people to buy properties over the holidays are as follows. It’s seen to be a favorable moment to invest in worthwhile things. During this time, new building projects start, and real estate developers typically offer deals and discounts to entice customers to buy their developments.
- The holiday season this year is likely to see a lot of attention paid to residential real estate by those looking to buy a home before housing costs climb. Real estate developers are starting several new projects with advanced amenities because they anticipate a high level of demand.
- Everyone is aware that buying real estate around the holidays is a wise decision. Developers of real estate and banking organizations provide excellent offers and discounts, and even the government encourages this period by providing several tax exemptions.
- Real estate is expected to do well during this festival season. Numerous holidays, including Navratri, Diwali, and Christmas, will be celebrated throughout the next months of 2023. After experiencing pandemic shocks that resulted in nationwide lockdowns in the previous two years, the real estate market has recently shown signs of making a strong comeback. Particularly among first-time buyers, there has been a notable rise in house buyer optimism this year. Real estate investments now make sense throughout this holiday season.
- So why do you still wait? This holiday season, find the perfect property for you and trust Silverdome Realtors to make the process as simple as possible.
Why is festive the right time for investing in real estate :
- The Indian holiday season is regarded as the most anticipated and fortunate time for auspicious home and property buyers to make significant purchases.
- The time is typically distinguished by several specials, the debut of brand-new initiatives, and lots of other incentives that draw attention, ultimately increasing the number of people.
- The holiday season is a good time to invest in real estate for the following reasons.
1. Launches of New Projects
Many developers introduce new projects around the holiday season. They view this as a fortunate time for any launch. On the other side, a lot of people select this time of year to acquire real estate for significant investments. As a result, both home purchasers and real estate developers benefit from the holiday season.
2. Holiday Promotions
To attract customers, turn them into prospective buyers, and meet their sales targets, a lot of developers come up with various schemes and offers during this season. The schemes can range from finance schemes to giving something for free. Offer! Free! Sale! Discounts! are words that make people happy, and all this during the festive season is definitely cherry on the cake.
3. Interest rates are low
Banks typically take the initiative to lower the interest rates on real estate loans over the holiday season. For instance, the RBI this year lowered interest rates to a four-year low regardless of the loan amount, which was beneficial for the clients. Home loan EMIs are anticipated to decrease by 8–10% as a result of this RBI action.
4. An increase in available funds
During this time, businesses typically announce staff incentives or evaluations. For purchasers who feel financially secure, this may be an alternative for a down payment. Homebuyers may feel greatly relieved by these small wage gains because they may now use their money to purchase the house of their dreams.
Benefits of Indian Real Estate Investment during festive season
This holiday season is quite popular with home buyers for the following reasons:
Numerous deals and offers
Developers offer deals, discounts, and tax breaks over the holiday season to entice customers. Developers are keenly aware of the customary market phenomenon when buyers patiently await the holiday season to make an investment in real estate.
If you’re a home buyer, you can anticipate a variety of offers during this time, such as brokerage discounts, cash discounts, advantages on registration and stamp duty, travel vouchers, free parking spaces, convenient payment plans, exemption from Preferential Location Charges (PLC), free home appliances, or gold and silver coins. Additionally, some developers offer to pay rent to buyers until they take possession in an effort to promote investment.
Potential for negotiation
Sales volume is typically high during the holiday season, which makes vendors more receptive to negotiating. Additionally, the festive season’s limited time span may push developers to complete transactions swiftly. Buyers can make the most of this and make appropriate investments.
Cons of India Real Estate Investment
The drawbacks of real estate investing should be thoroughly considered by potential investors before beginning.
You feel in control when you buy real estate
Real estate offers you a great deal more influence over your overall financial performance than other types of investments. When it comes to investing in Indian real estate, you have a lot of control over the decisions you make.
By making real estate investments, you can reduce your risk and hasten the growth of your wealth. I’m willing to put in the effort to find deals. In a competitive rental market, I employ tactics to make sure my homes entice the best tenants. By adjusting my strategy, I can raise my rental income.
Long-term returns can be expected from investing in real estate
When purchasing real estate in India, a long-term plan should always be taken into account. If you need money, it won’t be simple to sell the actual object you invested in. Never put money into a REIT if you need it within the next few years; such investments are better suited to those with a longer time horizon. If you want a speedy return on your investment, a REIT might not be the best choice.
Real estate transactions take a long time to complete :
You must make time to research and maintain your real estate holdings. There is a learning curve in real estate, and you risk losing a lot of money if you don’t know what you’re doing. Actively managing your rental properties may take a lot of time.
Real estate investment, in contrast, is a long-term tactic. Real estate sales are time-consuming and a financial task.
How to make the right choice about the investment?
Take a look at these three crucial factors so you can make the best choice possible :
- Despite what consultants, contractors, and brokers may frequently suggest, purchasing a property is not a simple process. Only the salesperson can easily complete it.
- Don’t just think of real estate investment as a major investment because sometimes it could otherwise turn into a big disaster. Consider all the points before jumping to conclusions.
- You can purchase a flat that is ready to move into if your finances are sound.
Festive Season Demand: Residential properties on the rise
- Residential real estate demand has increased consistently throughout the course of the year as a result of cheap home loan interest rates and low inventory levels in major cities. Due to the pandemic, many choose to own their own homes, which has led to this situation. Lower interest rates on house loans contributed significantly to this demand.
- This demand is likely to persist, and three characteristics make the holiday season a successful one for real estate. First, rising input costs have caused prices to gradually rise. Because consumers prefer to purchase in an environment where prices are growing, this results in higher demand. Second, despite a 140 basis point increase in home loan rates to 7.9 percent, demand has not been affected because rates are still below those of the time just before the pandemic. This is due to the fact that the Indian economy is still expanding despite the global crisis that has caused an increase in interest rates. Third, as more individuals work from home, there has been a need for bigger homes with better facilities.
Festivals boost the commercial real estate sector :
- As it has always been viewed as a fantastic time to invest in assets that increase wealth, the Indian holiday season has established itself as the yearly high point for commercial real estate. In addition, the momentum for leasing office spaces is still increasing despite the pandemic-driven work-from-home and hybrid solutions. By the end of 2023, experts forecast that the commercial real estate market will reach new heights and possibly even surpass the record-breaking year 2019 and various festivals even contribute to the growth.
Advantages of having a real estate consultant in festive season :
- This holiday season, realtors are predicted to launch a large number of projects.
- In response to uncertain demand, real estate developers have launched fewer projects during the past two years. It appears to change this year, though, as developers have chosen to launch a number of projects in an effort to generate momentum and cash flow.
- Due to low lending rates and discounts provided by builders, real estate developers and brokerage companies have reported sales that were up to 100% higher during the holiday season.
- Although the job of a property consultant may appear straightforward and basic, it requires great research and analytical skills to be successful in the industry. To successfully analyze the best possibilities for the clients, a thorough understanding of real estate and investments is also essential. Last but not least, a property consultant guide or any other real estate sales specialist should possess thoroughness or attention to detail.