Festive Monetary Spice up: The Financial Have an effect on of Seasonal House Purchasing – Business Information

By Aditya Kushwaha

As the festive season approaches, the housing market in India is gearing up to meet the anticipated surge in demand. A confluence of favourable economic conditions and attractive offers from housing finance companies is creating a promising environment for potential homebuyers, especially first-time buyers. Among the factors supporting this momentum is the Reserve Bank of India’s decision to maintain its policy rate at 6.5%, ensuring financial stability and affordability in borrowing, which is expected to bolster housing sales in the coming quarter.

Tradition Meets Opportunity

In India, the festive season is often associated with new beginnings and significant purchases. This cultural backdrop and enticing financial offers have resulted in a boost in property sales. Key real estate players are focusing on enabling the Economically Weaker Section (EWS) and Low-Income Groups (LIG) to buy homes, especially in Tier 2, 3, and 4 cities.

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Destinations such as Goa, Nainital, Mukteshwar, and Puri see a significant influx of tourists during the festive season. Owning a holiday home in these popular areas provides an opportunity to generate rental income. Properties in tourist hotspots generally increase in value over time, and this trend often accelerates during festival periods. Purchasing a holiday home at this time allows for capital appreciation, especially as demand for vacation properties continues to rise.

Festivals are traditionally celebrated with family and friends, and owning a holiday home enables individuals to create lasting memories by hosting gatherings in picturesque settings. For example, one might celebrate Diwali in a hilltop villa in Nainital or spend Christmas at a beachside house in Goa.

 Government Schemes and Market Shifts

Government initiatives, such as PMAY 2, are also playing a key role in supporting the housing market. The scheme aims to increase the availability of affordable housing and simplify access to home loans for qualified buyers. By extending support to both urban and rural areas, PMAY 2 is enhancing the housing market by driving both demand and supply.

Recent reports indicate that affordable housing, priced under INR 40 lakh, and mid-range housing, priced between INR 40 lakh and INR 80 lakh, have become the most preferred segment among developers. Together, these segments accounted for 62% of new launches in 2023, up from 54% the previous year. On the other hand, the luxury and ultra-luxury housing segments experienced a decline, with their share dropping to 19% of new launches. This shift reflects a growing preference for accessible housing, which is driving demand for financing solutions.

Additionally, women buyers are also playing an increasingly important role in the housing market, with reports showing that they are responsible for 31% of property purchases in India’s major cities. 

The Ideal Time for Homebuyers

Aside from the financial benefits, buying a home during the festive season holds emotional and cultural significance. This time of year is often seen as an opportunity for new beginnings, and for many, homeownership is a key part of this process.

For prospective homebuyers, the festive season presents an ideal moment to take action. With the housing market in full swing and housing finance companies offering competitive terms, the path to homeownership has never been more appealing. The alignment of financial offers and cultural factors makes this period an opportune time for many to realise their dreams of owning a home.

About the author: Aditya Kushwaha, CEO and Director, Axis Ecorp

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