India's home sales this year are expected to increase by 30% over 2022: Colliers

Home sales in 2023 are anticipated to be 20-30% higher than in 2022 due to the festival season, according to a report released by the real estate consultancy Colliers India. According to industry statistics, sales for this year have already surpassed the total sales for the entire year 2022.

According to Mr. Badal Yagnik, the Chief Executive Officer (CEO) of Colliers India, "Typically, the October-December quarter (Q4), marked by the higher inclination of homebuyers to wrap-up property purchases in the festive period and instantaneous liquidity benefit aided by developers offering attractive discounts, has historically provided the final push to residential activity."

The consulting firm stated that historically, the last quarter of the year has seen increased sales. In 2022, that quarter accounted for 42% of all home sales. The years that were affected by the COVID-19 pandemic and interest rate increases also demonstrated this. It was 39% in 2020 and 37% in 2021. It is anticipated that this year's quarter will surpass 33% of all homes sold throughout the year.

A number of reasons are driving up home sales this year. First, the sentiment has been positive all year long. The residential sales exceeded the record high in various quarters.

Secondly, to counteract the effects of the COVID-19 pandemic, a number of state governments reduced stamp duty and registration fees by as much as 2%. "In fact, homebuyers, nudged by the significant one-time monetary outflow reduction, purchased homes even in otherwise turbulent times marked by financial and economic volatility," stated Colliers India.

Third, emotions continue to have a greater influence on property purchases in India than interest rates do.

"At the industry level, the fact that there is little correlation between changes in repo rates and home loan disbursements proves that the sense of identity and belonging that comes with home ownership, rather than the transient financial gains brought about by changes in repo rates, governs residential segment activity in India." According to the firm, buyers who are serious about making a purchase are inclined to go above and beyond their means to buy homes that fit their ideal identities and lifestyles.

New product launches, steep discounts, partnerships between developers and home furnishings companies, creative payment plans, and focused marketing initiatives are further elements driving increased sales.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.