As
the real estate sector witnessed a price crash impact due to the
pandemic, end users are queuing up to buy their dream homes. With
fantastic Navratri sales, developers and lenders are now pinning hopes
for better Diwali sales.
Private
sector lender ICICI Bank on November 11 said it has seen a significant
pick-up in home loan disbursements in October both in terms of the
number of customers and in terms of value. Bank's mortgage loan
portfolio has crossed Rs 2 lakh crore, the bank said.
"We
have seen a resurgence in demand for home buying," said Anup Bagchi,
executive director of ICICI Bank in a conference call with reporters.
The numbers are substantially more than September, Bagchi said, adding,
the bank is aiming to ramp up its digital channels for business and the
process is already underway. Part of the growth is due to the
affordability of homes, Bagchi said.
"Aspirations
have grown. We are seeing a lot of first time home buyers, who were not
able to reach a decision in the previous quarters due to lockdown are
eager to conclude the deal in this auspicious season and both banks and
developers are coming with lucrative offers to attract buyers," said
Rajeev Talwar, chief executive of DLF Ltd and chairman of industry body
Naredco.
Renewed
buyer interest is what is helping developers look at clearing stocks
and come up with good options. Karan Kumar, chief marketing officer, DLF
Ltd, said, "We foresee renewed interest in the upcoming festive season
against the backdrop of the depreciating rupee, low-interest rates on
home loans. All of these have improved the attractiveness of real estate
as an investment asset class against other traditional alternatives.
The festive season, coupled with a number of recent measures by the
government, and offers from developers, hopefully, will nudge investors
to make their decision during this period."
Attractive
prices, due to price corrections during the pandemic is making
inquiries get converted into genuine sales. "This year, the desire to
finalise a property seems to be more intense as buyers have realised the
value of real estate assets and a need for extra space for office work.
The sales have started picking up pace in Q3, and we have seen a trend
of a surge in sales during the festive season, and likewise, we expect
this year to witness an increase in demand. Factors including
low-interest rates and attractive post-pandemic schemes & offers
will further motivate buyers to purchase homes. We are launching
attractive payment plans to suit the needs of consumers," said Amarjit
Bakshi, CMD, Central Park.
But,
it is not just the revival in buyers' sentiment, which is driving
sales, even good festive offers are pulling in end users. Pankaj Bansal,
director at M3M Group, said, "As we have stepped into the festive
season, consumer sentiment is strong and since we have offerings in all
the spectrums - under construction - residential and commercial;
delivered - residential and commercial; we are poised to meet the
customer needs. M3M delivered 8 projects within a span of three months -
July to September 2020 with a total of 30 lakh sq. ft. area and sales
value worth 32,00 crores. We recorded 500 crores of sales in the first
fortnight of having announced the 'port your property' campaign in
October 2020."
Developers
also used the time they got during the lockdown to focus on innovation
and technology to ensure ease in the process. Developers are using
technology to bring homes to buyers.
"The
festivals of Dhanteras and Diwali have been traditionally associated
with achievement and prosperity in Indian society. We have an
omnichannel approach where we are using both traditional and new-age
mediums to put our vision across potential homebuyers. We also use a mix
of all major social media platforms for lead generation, which have
been giving us positive results. With travel taking a backseat due to
covid-19, people are now more inclined to invest in their future than
looking at experiences, hence the prospects of real estate are positive
in this festive season," said Ashish Sarin, chief executive officer,
AlphaCorp, said.
"We
foresee the sales to peak in the festive season. It is an opportune
time for real estate purchases due to favorable demand and supply-side
dynamics, value-added deals, and government's thrust to the sector in
select cities and bright prospects of real estate investment against
alternative asset classes," Ravish Kapoor, managing director, Elan
Limited, said.
"We
foresee robust sales in the festive season. Real estate has emerged as a
relatively safe mode of investment, and interest rates on home loans
are low. Also, the value-added offers by developers and banks will also
attract consumers," Rahul Singla, director, Mapsko Group, expressed his
opinion.
To
watch out for is, how banks expand their retail loan book and whether
the festive season brings back some cheer to the struggling real estate
sector or not.