As the festive lights begin to twinkle and the air fills with the scent of celebration, India's housing market is gearing up for fulfilling the anticipated demands within the Indian housing industry. This year, the convergence of favourable economic conditions and enticing offers from housing finance companies creates a golden opportunity for aspiring homeowners, particularly first-time buyers.
Cultural Significance and Financial Incentives
The festive season in India has always symbolized new beginnings and auspicious purchases, and this year, the surge in property sales is backed by both tradition and tangible financial incentives. The key players including IIFL Home Finance are committed to empower the Economically Weaker Sections (EWS) and Low-Income Groups (LIG) to achieve their dream of homeownership in Tier 2,3 and 4 cities.
Attractive Offers for First-Time Buyers
One of the most compelling factors this festive season is the array of special offers from financial institutions. IIFL Home Finance is providing competitive interest rates with a minimum login fee starting from Rs 999/- and tailored loan solutions specifically for first-time home buyers. Consumer spending trends also indicate a projected 15-20% increase this festive season compared to last year, further enhancing the appeal of homeownership. With over 390 branches across 17 states, IIFL Home Finance proudly serves more than 2,86,000 customers nationwide. The Company is committed to making home ownership accessible and affordable.
Government Initiatives and significant push: PMAY 2
A significant boost to this dynamic is the government's implementation of PMAY 2, which aims to extend affordable housing options and streamline access to home loans for eligible buyers. By sanctioning loans for the homes based out in urban and rural areas, PMAY 2 enhances the framework for affordable housing, directly impacting demand and supply in the real estate sector.
Budget Segmentation Trends
On the budget segmentation front basis industry report, affordable housing (priced under INR 40 lakh) and mid-end housing (priced between INR 40 lakh and INR 80 lakh) have emerged as the most preferred segments among developers. Together, they accounted for nearly 62% of new launches in 2023, up from 54% the previous year. In contrast, the luxury and ultra-luxury segments, which contributed 19% of total new launches with approximately 29,960 units, saw a decline from a 24% share in the previous year. This shift underscores the growing preference for more accessible housing options as more buyers look to enter the market. Thus, more buyers also call for housing finance options within the market.
Empowering Women Homebuyers
The festive season also brings a unique opportunity for women homebuyers. With women increasingly leading property purchases—accounting for 31% of housing sales in India’s top cities according to reports. IIFL Home Finance offers special benefits tailored for women applicants/buyers. This initiative not only promotes gender equality but also aligns with the broader trend of female empowerment.
Emotional Appeal of Homeownership
Beyond the financial incentives, there’s an undeniable emotional appeal to starting a new chapter during this auspicious time. The cultural significance associated with homeownership during the festive season encourages many to make the new beginnings in life.
A Promising Future for Homebuyers
For those considering a home loan, this festive season may be the ideal moment to act. With the real estate market abuzz with activity, housing finance companies tend to offer the best terms, and the stars aligning both financially and culturally, the path to homeownership has never looked more inviting for the masses.
With PMAY 2 paving the way for greater accessibility in home loans and the market leaning towards affordable segments, the future of the real estate market looks promising, driven by increasing demand and a favourable supply environment.
