Luxury Homes And Navratri: Why High Net-Worth Buyers Invest During Festivals

Luxury Homes And Navratri: The festive spirit has gripped India, with Navratri already underway, and Dusshera, Dhanteras and Diwali just round the corner. This festive period is also considered an auspicious time for purchasing homes in India. Many high net-worth individuals (HNIs) and ultra high net-worth individuals (UHNIs) invest in real estate at this time of the year.

According to a report by JLL Homes, the residential brokerage service and property portal of JLL (Jones Lang LaSalle), luxury housing witnessed an uptick in demand during the festive season. In 2024, sales of premium homes nearly doubled in several cities during the festive season. Another report by Sotheby’s International Realty, a global luxury residential real estate brand also says that luxury enquiries generally increase between 15 per cent and 20 per cent during the festive season.

While the demand for luxury homes surges, the actual sales also witnesses a significant uptick. A report by real estate advisory firm CBRE showed that in 2024, the top seven Indian cities witnessed an uptick in luxury home sales (priced at Rs 4 crore and more) during the festive season.

CBRE said in its report that the top seven cities (Mumbai, Pune, Delhi-national capital region (NCR), Bengaluru, Chennai, Kolkata, and Hyderabad) saw luxury home sales growing to 4,360 units in the third quarter of calendar year 2024, indicating an increase of 82 per cent compared to the corresponding quarter of the previous calendar year. Here’s a look at some of the factors which drive luxury home sales during the festive period.

Why HNI Buyers Purchase Homes During Festive Period

HNIs purchase luxury homes during the festive season in India for a variety of reasons. One of the most major triggers for these purchases is the cultural belief that investments made during the festive period are likely to invite good fortune and prosperity on account of the auspiciousness of these months.

Apart from the cultural belief, luxury homebuyers also buy homes in the festive season for upgrading their lifestyle to incorporate more exclusivity and better amenities in their daily life. Other factors may include changing their address to a more iconic location which has better connectivity and offers better civic amenities.

On the other hand, developers try to capture this demand by launching new luxury projects and rolling out exclusive offers during the festive period to cater to high net-worth buyers. Apart from the purchases made for residential use, luxury real estate is also purchased by high net-worth buyers for investment purposes. In recent times, property prices of luxury accommodations have surged significantly. Thus, high net worth individuals anticipate the momentum to continue and provide them appreciation for their investments.

Pramod Kathuria, founder & CEO, Easiloan, a digital home loans marketplace, told Outlook Money that generally high net-worth clients view property transactions from a long-term perspective. He added that during the festive season, luxury homebuyers gain from superior inventory launches, custom payment plans and bundled offers.

“High net-worth clients tend to view property and asset transactions through a long-term strategic perspective. To HNIs, the festive season offers twofold benefits — cultural value and economic advantage. Aside from discounts, they consider augmented products, such as superior inventory launches, payment plans, or bundled offers. Notably, HNIs have long holding periods, and during festivals, they can time their investments best without settling for asset compromises,” Kathuria said.

To conclude, while the festive season provides a boost to real estate sales in the luxury segment, the sales are ultimately led by macroeconomic triggers, and demand and supply. HNI and UHNI buyers should make the most of the benefits provided to them by the festive period while remembering to focus on fundamentals, such as builder reputation, project location, and price while purchasing luxury homes.