When will this real estate winter end?

The real estate market hasn’t seen a big revival this festive season, but interestingly there is growth in consumption of all kinds in other sectors. Could this be a sign for the real estate market as well?

Domestic car sales were up 21.8% in October. Two-wheeler sales were up 13.31% while sales of commercial vehicles also rose 12.73%, according to data from Society of Indian Automobile Manufacturers. Petrol sales have risen 14.77% since the start of the year. Diesel sales rose 20.2% in September and 16.3% in October.

That the festive season went well for retailers could be seen in the record amounts of cash that was withdrawn by consumers from the banking system during the festive period translating into strong sales of consumer products. According to RBI data, circulation of cash and currency in the system rose by Rs 66,070 crore in the first two weeks of November. That’s 2.5 times last Diwali.

People are starting to buy. They might not be buying homes just yet, but at least the buying process has started. The low to mid value products are seeing growth. And there is usually a lag between improvement in the economy and improvement in home sales.

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