India’s Housing Market Set for Festive Season Boost in 2024
As the festive season nears, India’s housing market is poised for a significant increase in demand, building on the strong sales momentum of 2023 and the first nine months of 2024. This period is traditionally seen as an auspicious time for home purchases, attracting first-time buyers and contributing to the sector’s growth.
Throughout 2024, positive homebuying sentiment has persisted, with over 150,000 units sold in the first half of the year, surpassing the same period in 2023. However, potential buyers are expected to be cautious due to rising property prices and global economic uncertainties.
The luxury housing segment continues to drive demand, particularly in the Rs 2-4 crore and above range. High-net-worth individuals (HNIs) and non-resident Indians (NRIs) are key players, seeking higher returns on investment amid a turbulent global economy. An emerging group of upper-middle-class buyers is also showing interest in lifestyle upgrades.
Developers are offering enticing deals to attract homebuyers, including EMI waivers, GST exemptions, and complimentary registration and stamp duty. Additional perks like modular kitchens, electronics, free parking, and furnished apartments are also being offered. Some developers are collaborating with banks to provide fixed interest rate schemes, enhancing the festive appeal.
New property launches are expected to increase, continuing trends from previous years. With strong market performance in the first half of 2024, the festive season could push total sales and new launches beyond the 300,000-unit mark for the second consecutive year.
Despite higher loan rates, homeownership remains a priority for many buyers. Data from the Reserve Bank of India (RBI) shows a 40% increase in home loan deployment, indicating resilience and confidence in the housing sector. Credit providers must manage Non-Performing Assets (NPAs) carefully to maintain market stability.
Doubts Revealed
Festive Season -: In India, the festive season usually refers to the time around major festivals like Diwali and Dussehra, when people often make big purchases, including homes.
Luxury Housing -: Luxury housing refers to high-end homes that are more expensive and have better amenities, like swimming pools or gyms, compared to regular homes.
High-net-worth individuals -: These are people who have a lot of money and assets, allowing them to buy expensive things like luxury homes.
Non-resident Indians -: Non-resident Indians (NRIs) are people of Indian origin who live outside India but still have ties to the country, often investing in property back home.
Upper-middle-class -: This group includes people who earn more than the average income in India, allowing them to afford better homes and lifestyle upgrades.
RBI -: RBI stands for the Reserve Bank of India, which is the central bank of the country, responsible for managing the country’s money and financial system.
Home loan deployment -: This means the amount of money banks are giving out as loans to people for buying homes.