Summer Doldrums Hit Real Estate Transactions
The real estate sector experiences a predictable lull during the summer months, with transaction volumes significantly decreasing. This trend is evident in the lower number of project launches during the second quarter (April 1st to June 30th, 2011). Between January 2005 and December 2010, 46,093 high-rise apartments were launched. The third quarter (July to September) witnessed the highest number of launches, accounting for over 41% of new high-rise homes in the city. Conversely, the second quarter saw the fewest launches, with only 5,448 apartments (11.82%) entering the market.
Heat, Holidays, and Auspicious Timing Affect Buyer Behavior
Real estate analysts attribute the decline in buyer activity during summer to several factors. The intense heat and extended summer vacations are primary deterrents.
“It is true that transaction volumes are lesser during the summer months. This is a time when the weather is not inspiring for buyers. Moreover, since summer vacations are the longest, many families go out of town for holidays. People wait for the Navratras and Diwali as they consider this time to be auspicious which falling in the third and fourth quarters respectively. Also, as the weather is acute, many people feel this is not an appropriate time to shift into a new home. Also, since children are already into their new academic year, parents do not want to make a change.
Quarterly Fluctuations and NRI Influence
Launch figures reveal that the first quarter (January to March) ranks second in terms of new apartment launches, with 13,814 units entering the market. The fourth quarter (October to December) also experiences a surge in launches, accounting for over 16% of the total. The financial year's closing in the first quarter often boosts transaction volumes. Meanwhile, the winter months see a substantial influx of non-resident Indians (NRIs) visiting family in India, contributing significantly to real estate transactions during that period. The increased activity during winter is largely driven by NRI purchases.