Festive demand to boost real estate launches: Religare

NEW DELHI: Real estate project launches in the country are likely to see a spurt in the months of October and November on hopes of increased demand during the peak festive season, says a report.

According to the report released by brokerage firm Religare Securities, the festive discounts and promotional offers by the builders will boost the volumes, which may also result in an upside of about 10 per cent in the property prices.

"August has seen a number of new real estate projects and the launch momentum is expected to continue in the peak festive months of October and November," it added.

Moreover, revival in the infrastructure sector may also drive the real estate demand across various cities.

The report also noted that the increase in property prices was not likely to adversely impact the demand.

August had witnessed a number of launches growing over three-fold and about 59 per cent increase in the sales compared to the year-ago period, it said.

The IT hub Bangalore witnessed the maximum number of new projects in August. The fresh launches tripled in August to four million square feet (msf) of new spaces as compared to 1.2 msf in July. Sales also shot-up by 59 per cent to 3.5 msf.

Financial capital Mumbai also saw a 15 per cent jump in new spaces to 1.5 msf in August as against the month of July.

The report noted that the frontline real estate stocks, including DLF and Unitech, have seen a run-up of as much as 20 per cent in the last one month on the expectations of increased property demand during Navaratras and Diwali season.