Vacation home sales are up due to the festive season's increased demand for New Property

Posted on: September 22, 2022
Star EstateVacation Home Sale

Buyers' preference is for well-known brands due to cheap interest rates and a scarcity of homes for sale in most major cities.

Because of low home loan rates and a lack of available housing in most major cities, residential real estate has been in high demand all year. According to A Real Estate Company survey numbers, by Q22022, the inventory overhang will have shrunk from 48 months to 22 months. Because of the epidemic, more and more individuals are choosing to own their own houses. Reduced house loan rates contributed significantly to this demand.

This country-wide housing shortage has led to a dramatic increase in demand over the last year. Quarter-over-quarter, it has accelerated. A real estate developer's senior vice president and head of residential sales predicts this tendency will persist and even grow throughout the holiday season since many clients will wait to make purchases until more favourable periods.

There are three reasons to expect this demand to persist, all of which will help the real estate industry have a prosperous holiday season. The first reason for the price rise is the rising cost of raw materials. Demand rises as a result, since shoppers want to make purchases while prices are going up. Two, the 7.9 percent interest rate on house loans is still lower than what it was before the epidemic, so the increase of 140 basis points hasn't dampened demand. According to a director of a brokerage company, despite the global crisis leading to a jump in interest rates, the Indian economy continues to expand at 7 percent. A third trend is that more people want to run their businesses from the comfort of their own homes, which means they need bigger, more modern homes.

In this climate, holiday homebuyers should be able to choose from a wide variety of options. Because of the monsoon and the Shradh season, the previous quarter (July-Sept) is traditionally a slow one for sales, and they tend to be grouped together in the current (October-December) quarter.

Several new projects are being released by listed and major developers, which are drawing a lot of customers and investors. An expert and head of a real estate consulting firm, has observed that "homebuyers nowadays are biassed toward brand names," which are seeing strong sales in their developments.

Moreover, there is a large supply of ready-to-move-in properties on the market for discriminating purchasers, which might boost sales over the joyous holiday season. "A research estimates that in the seven largest markets, there are about 1.21 million completed dwellings on the market at the moment," an expert adds.