Realtors see 10-30% jump in pre-Diwali sales
Realtors see 10-30% jump in pre-Diwali sales


Realtors see 10-30% jump in pre-Diwali sales

Property developers are witnessing a growth of 10% to 30% in pre-Diwali residential sales this year. Premium and luxury residential sales have surged in the last two years, driving demand for larger homes, according to developers.

Ramesh Ranganathan, CEO of K Raheja Corp Homes, said, “The demand for residential properties has experienced an upswing, driven by expanding cityscapes, rising incomes, and growing aspirations, and we expect a 15-20% growth as compared to last year.”

The luxury real estate sector is witnessing a remarkable surge in the introduction of new residential projects, with price tags spanning from `2-3 crore to as high as  `15 crore, Ranganathan stated.

Units priced over `2 crore saw a jump of 75% in Q3CY23, Knight Frank India said .

“Our recent offering in Powai has been recieved well and we have registered an incremental sales growth of nearly 10%.” said Niranjan Hiranandani, managing director at Hiranandani group.

According to Anarock Property Consultants, as many as 92,160 units were sold in the top seven cities back in the festive quarter of 2022.  “As things stand now, we could see least 30% yearly growth in the ongoing festive quarter in 2023,” said Santhosh Kumar, vice chairman at Anarock Property Consultants.

Price rise
Compared with last Diwali prices have gone up between 5 to 15 % depending on the project, micro market and cities, developers said.

“In general, we have seen prices in Bangalore go up by 10%-15% over the last year and a similar trend to a lesser degree has been observed in our other key markets such as Mumbai and Hyderabad,” statedIrfan Razack, chairman and managing director at Prestige Projects Estates.

For instance, a three bed room-apartment which was being offered at `2.65 crore at its Prestige City Bellanzas project last year, is now priced at `3 crore this Diwali for a similar unit, Razack mentioned.

“In Bengaluru, the demand has been so strong that none of the projects which we were selling in Diwali, has any availability today”  he said.

Razack added that they launched a few projects in Whitefield in Bangalore in the past few months at an average sale realisation of `10,000- per square feet of saleable area. While last Diwali, projects in similar vicinity from Prestige Group were priced at around `8500 per sq ft.

“In Mumbai, the property market has seen on an average price growth of 5-7% in last one year due to demand-supply economics, stable home loan rates, and fall in unsold inventory,” said Hiranandani of the Hirnandani Group.

Ayushi Ashar, director at Mumbai-based Ashar group sated that the firm has seen rise in prices of more than 12% in our key projects.

Some micro markets have seen a higher price rise, mentioned Anarock’ s Kumar.

For instance, in Bengaluru, average residential prices in Whitefield increased by 18% – from `5,300 per sq ft as of September 2022 to nearly `6,235 per sq ft in September 2023. Likewise, Hyderabad’s Gachibowli and Kondapur also saw 18% jump in average residential prices in the same period, he said.

Kanika Gupta Shori, founder and COO, Square Yards said, “Though property prices have increased across cities, it hasn’t dampened the homebuying spirits as homeownership is now governed by a sense of belonging and identity.”

No discounts
Most of the top developers in premium and luxury segment are not offering any discounts.

Ranganathan of K Raheja Corp added that their target markets of Mumbai, Pune, Hyderabad, and Bengaluru is where they anticipate heightened demand. 

“Given this robust demand, it is unlikely that we will offer any discounts during the festive quarter for our projects..”  he said .

Anarock’ s Kumar said that the given that housing demand is at its peak, developers are literally shying away from giving away any major discounts on properties.

Sunil Pareek, executive director at Assetz Property Group said the company is not providing any exclusive discounts for the festive season. 

“Despite this, the projects are able to pull-in strong sales due to attractive bank schemes, compelling range of products, and positive market buoyancy.” Pareek said.

Across the board, prices have increased over the last one to two years. In the last year alone, prices in the same project have appreciated by 10% to 20%, he added.

For instance, in one of their projects in South Bengaluru, which was selling at an `6,000 sq ft base price, is now selling for over `7,500 sq ft as the base price.

Source: Financial Express