High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

According to Samir Jasuja, Founder and CEO of PropEquity, properties priced above ₹2 crore are witnessing sustained demand as developers increasingly align their launch pipelines toward this premium category.

Jasuja notes that while the broader market saw a dip in activity in recent quarters, a festive-season rebound driven by lower inflation, easing interest rates, and favourable tax measures is likely to lift overall sentiment and spur a quarter-on-quarter rise in sales and supply. Edited Excerpts –

Q) How is the overall mood looking from buyers this Diwali? We have seen 100bps rate cut as well from RBI?

A) The homebuyers’ sentiments look upbeat in view of a low inflation and interest rate and rationalisation of GST and income tax announced by the Government.

While the last quarter has seen subdued activity, I think a rebound in this quarter due to the festive season, which is expected to drive stronger demand, leading to improved launch momentum and a higher absorption level.In top 9 cities in Q1 2025, housing sales saw 9% YOY decline and 15% YOY decline in launches. The second quarter saw 23% YOY decline in sales and 34% YOY decline in launches. Housing sales in Q3 saw 4% YOY and 1% QOQ decline.I expect 10-15% QoQ sales and supply growth in Q4 2025.In the last festive quarter i.e. Q4 (October-December) of 2024, 11,66,80 units were sold (up 11% QOQ) and 10,11,69 units were launched (up 12% QOQ).

Q) What kind of properties — luxury, mid-income, or affordable — are witnessing the highest demand this festive season?A) Over the last few years, luxury properties, especially those priced upwards of Rs 2 crores are seeing heightened demand and this trend has continued to solidify as developers have been realigning their launch pipelines to cater to this segment.

Q) Are investors returning to real estate this Diwali, especially given the rally in other asset classes like equities and gold?A) Investors have overall been cautious in the last several quarters across all asset classes including real estate owing to correction from the highs witnessed post-pandemic.

However, with the uncertainty surrounding the economies owing to ongoing trade war, geo-political tensions, volatility in global financial market and tech sector layoffs in India may have some repercussion on real estate.

Q) What’s your outlook for real estate demand and prices post-Diwali, especially with the expected interest rate cuts in 2026?A) The housing market remains healthy even though the new launches are coming down consecutively is because the sales continue to be higher than the new launches.

I anticipate that 2025 will mirror 2024 with approximately 4 lakh unit launches and approximately 4.5 lakh sales, which is marginally lower than the 2024 numbers. Price growth, too, will be a tad lower than last year.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)