Why Festive Season Is the Best Time to Invest in Real Estate

The festive season in India holds immense cultural and financial significance, often marked by new beginnings and major life decisions, including real estate investments. During this period, property developers and banks roll out special offers, creating the perfect opportunity for buyers to invest in new residential projects. In this blog, we’ll explore why the festive season is considered the best time to invest in real estate, especially in booming markets like Pune.

 

The Auspicious Timing: Cultural Significance and Market Readiness

In Indian culture, the festive season, particularly during Diwali and Navratri, is seen as an auspicious time to embark on new ventures. For many, this period symbolises prosperity, making it a popular time to buy property in Pune and other growing cities. This cultural inclination also aligns with increased activity in the real estate market, as developers become more willing to negotiate and offer deals to attract buyers, making it an ideal time to make long-term investments such as purchasing property.

 

Cultural Significance as a Psychological Driver

The psychological impact of these festivals extends beyond cultural tradition—it serves as a powerful motivator for potential buyers. Many Indian families perceive the festive season as a fresh start, symbolically tied to wealth, fortune, and success. The emotional weight carried by this time of year intensifies their commitment to make significant decisions, like buying property, which represents stability and growth for future generations.

 

Purchasing a home during this auspicious time creates a sense of alignment with these cultural beliefs, enhancing the emotional connection to the property. It’s not just a financial investment; it becomes part of the family’s journey toward success and happiness. This emotional satisfaction encourages buyers to feel that they are starting a new chapter under the best possible circumstances, with the blessings of the festive season reinforcing their decision.

 

Festive Offers and Discounts: Maximising Your Investment

One of the biggest advantages of purchasing property during the festive season is the festive offers rolled out by developers. Events like the Happy Nest Festival by Kolte Patil feature discounts, Gold Vouchers, Furnished Homes, and even value-added services such as free No Stamp Duty & Registration fees.

 

Developers often provide:

• Price discounts
• Waived stamp duty and registration fees
• Free interior upgrades or home automation systems

These perks can significantly reduce the overall cost of luxury flats in Pune, offering a golden opportunity to maximise your investment during this period.

 

Favourable Market Trends During the Festive Season

Historically, the festive season is associated with increased inventory as developers launch new projects in Pune and across other key real estate markets. This influx provides potential buyers with a variety of options in terms of pricing, location, and features.

 

Moreover, property prices often appreciate after the festive season, making it an ideal time to purchase and secure a good deal. Buyers looking for flats in Pimple Nilakh or other desirable areas in Pune can take advantage of the increased selection and potential for price appreciation.

 

Let’s explore these favorable trends, backed by data and real-world examples, particularly in premium markets like Baner and Pimple Nilakh.

 

1. Increased Inventory During Festive Season

During the festive season, real estate developers in Pune and across other key markets launch new projects to tap into the buying enthusiasm. These new launches provide buyers with a broad array of options, from affordable housing to luxury flats, making it easier for them to find properties that suit their budget and preferences. Notable localities such as Baner, Pimple Nilakh, and Kharadi have seen increased development activity during this period.

 

• Real-world example: In 2022, Pune witnessed an increase of 20% in new project launches during the Diwali season compared to previous months. This spike in inventory is beneficial for buyers who want to explore new options across different price segments.
• Data support: According to a report by CREDAI, the festive quarter (October to December) consistently accounts for 30% of the annual residential property sales in Pune, reflecting how developers strategically time their launches to coincide with this period.

 

2. Price Appreciation Post-Festive Season

A notable trend during the festive season is the tendency for property prices to appreciate after the festive rush. This phenomenon is driven by increased demand, which typically pushes prices upwards. Buyers who invest in property during this time are often able to secure attractive deals before prices rise post-festivities.

• Real-world example: A study by Anarock Property Consultants found that areas like Baner and Pimple Nilakh have experienced 5-10% price appreciation in the months following the festive season. Buyers who purchased flats during Diwali in 2021 saw a significant increase in the value of their properties by mid-2022.
• Data support: Pune’s residential market witnessed an 8% year-on-year price increase from Q4 2021 to Q1 2022, with much of this growth attributed to the festive season buying spree, where pent-up demand led to sustained interest in newly launched projects.

 

3. Better Deals and Discounts

In addition to increased inventory and the likelihood of price appreciation, the festive season is also known for favorable buyer incentives. Developers often introduce special festive offers, including discounts, waivers on registration fees, and complimentary amenities. These perks make the festive season an ideal time for homebuyers looking to get the most value for their money.

• Real-world example: In 2022, multiple developers in Pune, particularly in Pimple Nilakh and Wakad, offered 10-15% discounts on premium flats during Diwali. This not only attracted local buyers but also piqued the interest of NRIs seeking investments in Pune’s real estate market.

 

4. Premium Localities Witness Higher Demand

Localities such as Pimple Nilakh and Baner, which are considered premium residential areas in Pune, tend to experience heightened demand during the festive season. These areas offer a blend of luxury, convenience, and a strategic location, making them highly sought-after. The combination of new launches and buyer incentives ensures these localities remain at the forefront of Pune’s real estate market trends.

• Real-world example: During the 2022 festive season, the demand for 2 and 3 BHK flats in Baner surged by 15%, driven by a combination of new project launches and attractive financing options provided by developers.

 

Financial Advantages: Home Loans and Tax Benefits

 

The festive season is a time when many banks and financial institutions offer special home loan schemes to attract potential home buyers. These offers can come in the form of lower interest rates, processing fee waivers, and other financial incentives. For many prospective homeowners, this is an excellent opportunity to secure a home loan on favourable terms. Below are the key financial advantages of taking a home loan during the festive season, along with tax benefits that can further enhance your savings.

 

1. Lower Interest Rates

One of the primary attractions during the festive season is the lower interest rates offered by banks and financial institutions. Even a small reduction in the interest rate can lead to significant savings over the loan tenure.

 

During the Diwali 2024 festive season, several nationalised banks in India are offering attractive loan interest rates to encourage borrowing for home loans.

 

State Bank of India (SBI): As part of their festive offer, SBI has reduced the MCLR (Marginal Cost of Funds Based Lending Rate) by 25 basis points. This brings the one-month MCLR down to 8.20%, making home loans and retail loans more affordable. This offer is valid from October 15 to November 15, 2024​

 

2. Processing Fee Waivers and Discounts

 

Apart from lower interest rates, banks may offer processing fee waivers or significant discounts during the festive season. While processing fees generally range between 0.5% and 1% of the loan amount, a waiver or discount can save you a lump sum amount upfront. For instance, if you take a ₹50 lakh loan and the processing fee is 0.5%, you can save ₹25,000 if the fee is waived.

 

3. Tax Benefits Amplified

In addition to festive season offers, taking a home loan also comes with substantial tax benefits under the Income Tax Act of India, which makes buying a home even more attractive:

 

• Section 80C: You can claim a deduction of up to ₹1.5 lakh per year on the principal repayment of the loan.
• Section 24(b): You can claim a deduction of up to ₹2 lakh per year on the interest paid on a home loan.

 

These tax deductions significantly reduce your taxable income, leading to substantial savings.

 

Example: Tax Benefit Illustration

Assume you are in the 30% tax bracket and you claim the maximum deductions under both Section 80C and 24(b):

• Principal repayment: ₹1.5 lakh deduction
• Interest repayment: ₹2 lakh deduction
• Total deduction: ₹3.5 lakh
• Tax savings (at 30%): ₹1.05 lakh annually

 

This ₹1.05 lakh annual saving, over the loan period, can further boost your financial position and help you manage your finances better.

 

Important Considerations and Due Diligence

While the festive season is full of attractive offers, it’s crucial to avoid rushing into a decision. Buyers should:

 

• Inspect properties thoroughly
• Conduct market research
• Verify builder credentials
• Compare multiple projects to ensure they are getting the best value

 

Balancing Emotions and Logic: During the festive season, emotions often run high, but it's crucial to maintain a balance between emotional impulses and logical decision-making. Ensuring legal checks and avoiding overly emotional purchases can help prevent future complications. Despite festive discounts, real estate investments require careful planning and thorough due diligence.

 

Maximise Your Real Estate Investment This Festive Season

The festive season is an opportune time to make smart investments in Pune's real estate market, where rapid growth and development are creating excellent investment potential. With festive offers, attractive loan schemes, and numerous new residential projects to choose from, now is the ideal moment to secure a property in this thriving city.

Whether you’re looking for luxury apartments in Pune, this period offers the chance to benefit from market trends and exclusive deals. Beyond cultural significance and festive discounts, investing now can yield long-term financial gains, making Pune’s appreciating real estate market a strategic choice for buyers.