The festive season in India is typically associated with attractive discounts and incentives in the real estate market. However, this year, developers are bucking the trend, holding firm on pricing despite some signs of slowing sales.

Low Inventory, Strong Demand

The primary reason for this shift is the low inventory levels in the affordable and mid-segment housing markets. Despite recent quarters showing some weakness in these categories, developers are not feeling the pressure to offer significant discounts to drive sales.

Luxury Segment Outperforms

While the affordable and mid segments have experienced a slight slowdown, the luxury housing market continues to perform well. This strong performance further reduces the incentive for developers to offer discounts across the board.

Shifting Incentives:

Instead of upfront price reductions, developers are focusing on offering flexible payment plans and other incentives that align with buyer preferences and market dynamics.

Expert Insights:

• Santhosh Kumar, Vice-Chairman of Anarock Group: Notes the absence of major discounts and incentives in the current festive season, particularly in the well-performing luxury segment.

• Gundeep Singh, CEO of Simplease: Highlights the shift towards streamlined payment plans as the primary incentive offered by developers.

Conclusion:

The Indian real estate market is demonstrating resilience during the festive season, with strong sales and low inventory allowing developers to maintain pricing power. While some incentives like flexible payment plans are being offered, the absence of significant discounts reflects the underlying strength of the market and the confidence of developers in the long-term outlook for the industry.

-source: moneycontrol.com