After Diwali boost, real estate developers expect to ride out demand for the rest of 2020

“We have received an encouraging response in this Diwali festive season with over 50% increase in sales queries vis-a-vis last year. Govt initiatives in infrastructure building / people moving to their hometown have been instrumental in boosting this growth,” said Santosh Agarwal, CFO, AlphaCorp.



NEW DELHI: Real estate developers are expecting the sales momentum generated during the Diwali season to last till the year end after better than expected off take of housing units in the last month and a half due to release of pent-up demand, great discounts in the market and accommodative steps taken by the government.


Multiple developers told ET that sales during the festive season has been better than last year and now they feel confident of strong demand even in next few months if ..


Multiple developers told ET that sales during the festive season has been better than last year and now they feel confident of strong demand even in next few months if they continue with discounts.


“We have received an encouraging response in this Diwali festive season with over 50% increase in sales queries vis-a-vis last year. Govt initiatives in infrastructure building / people moving to their hometown have been instrumental in boosting this growth,” said Santosh Agarwal, CFO, AlphaCorp.


Brokerage firm Square Yards said that the company’s overall property transactions grew 5% on-year during the recently ended quarter as against an industry drop of 50% in sales volumes.


Brokerage firm Square Yards said that the company’s overall property transactions grew 5% on-year during the recently ended quarter as against an industry drop of 50% in sales volumes.


Market watchers feel the festival season provided respite for the real estate sector as many developers clocked in strong sales over the last month and a half, thus stabilising cash flows.


“This goes to show that despite the challenging macro environment there are consumers in the market, who remain interested in buying homes. The Covid-19 pandemic has reinforced the importance of owning a home and that was visible in the sales numbers during the festival season,” he said.


Rajasthan-based Bhumika group, Noida-based ABA corp, and brokerage firm 360 Realtors also reported high number of sales and attributed it to optimism in the market.


“During Navratras, we received good traction for our newly launched plots as well as ready to move-in units. The momentum continued closer to Diwali and we have witnessed reasonable traction from customers despite the outbreak of 3rd wave of Corona cases in NCR region,” said Amit Raj Jain, Head of Sales, BPTP Ltd.


According to a report by property consultant JLL, home purchase affordability improved across key Indian cities despite a bigger fall in annual household income as compared to residential property prices.


“We can attribute the increase in buyer sentiment due to multiple factors such as advanced status of construction of our projects, low interest rates and an overall positive sentiment towards purchase of property,” said Uddhav Poddar, MD, Bhumika Group & Area Director, Entrepreneurs Organisation (South Asia).


Sales figures from July to September by property consultants pointed to signs of a recovery in the real-estate sector, though some of this growth could potentially be attributed to pent-up demand due to the prolonged lockdown across the country in the prior quarter due to the pandemic.


“The real estate is sentiment-driven, and post Covid-19 pandemic people thronged to the building sites to check out real estate assets investment or self-use,” said Amit Modi, Director ABA Corp & President (elect) CREDAI Western UP.


A brokerage firm 360 Realtors said that during the Diwali month, sales jumped by 85 to 90 percent on a month on month basis.


“There is optimism in the market due to the steps taken by the authorities and people’s realisation about the importance of a real estate asset,” said Sanjeev Arora, Director, 360 Realtors.


Source: https://economictimes.indiatimes.com/industry/services/property-/-cstruction/after-diwali-boost-real-estate-developers-expect-to-ride-out-demand-for-the-rest-of-2020/articleshow/79408919.cms

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