No Festive Offers Amid High Demand in Realty Sector

Real estate developers has avoided festive offers this season due to the rapid oversubscription and quick sales of projects, unlike in the past when home purchases included various incentives. 

“Builders used to offer incentives when there was an oversupply but weak demand. In the past 18 months, the majority of unsold inventory has been sold, resulting in increased demand for newly launched projects,” said CREDAI.

According to industry reports, residential sales in India are projected to achieve a record high in 2023, as developers anticipate selling more than 500,000 housing units by the year’s end.

“The buyers now seek assurance of securing a flat rather than discounts. Developers are receiving 4,000 checks for 800 flats, indicating that demand is surpassing supply,” said a real estate analyst.

Despite the steady influx of new property launches, the industry is poised to experience a surge in demand that will be the highest in a decade.

“In the southern and western regions of the country, including markets such as Pune, Mumbai, Bengaluru, and Hyderabad, the situation is comparable, with a similar positive response. The encouraging aspect is that reputable developers are introducing projects that appeal to both homebuyers and investors,” explained, a real estate brokerage firm.

With sales outpacing supply, the number of unsold inventory has also reached a decadal low.

Unsold housing stocks in Tier-1 cities in India dropped 11% to 508,464 units in Q3 2023 from 526,497 units in Q3 2022.

Analysis of the first three quarters reveals that new property launches in Tier-1 cities remain consistent with 2022 levels.

“The sector is getting the benefit of policy intervention and there is a lot more trust in developers. While two years ago, the majority of buyers were looking for ready-to-move-in flats, the trend has reversed,” said a real estate consultancy firm.

“Certain micromarkets in the country have received tremendous responses from buyers, and prices have surged.

This attracts a lot of interest from individual investors as well,” said another analysts.