Home sales in 2023 are expected to surge by 20-30% compared to 2022, primarily fueled by the festival season, according to a report from real estate consultancy Colliers India. Notably, this year’s sales have already outpaced the entire sales figure for 2022, showcasing the remarkable growth in the real estate market.
Mr. Badal Yagnik, the CEO of Colliers India, pointed out the historical trend of increased home sales during the October-December quarter, driven by homebuyers’ inclination to make property purchases during the festive season and the added benefit of instant liquidity due to developers offering enticing discounts. This quarter has consistently provided a significant boost to residential activity.
The last quarter of the year traditionally witnesses a surge in home sales, representing 42% of total sales in 2022. Even during pandemic-affected and interest rate fluctuating years like 2020 and 2021, this quarter accounted for 39% and 37% of sales, respectively. It is expected that this year’s Q4 will contribute to more than 33% of the total homes sold throughout the year.
Several factors contribute to the booming real estate market in 2023. Positive sentiment throughout the year, state governments reducing stamp duty and registration fees by up to 2% to counter the impact of the COVID-19 pandemic, and the strong emotional influence on property purchases in India have played crucial roles.
The report also highlights that the sense of identity and belonging associated with homeownership, rather than changes in repo rates, significantly influences the residential property market in India. Serious buyers are willing to stretch their budgets to acquire homes that align with their ideal identities and lifestyles.
Additionally, factors like new product launches, generous discounts, collaborations between developers and home furnishings companies, flexible payment plans, and targeted marketing strategies have contributed to the robust increase in home sales.
