Summer indicates a calmness for the real estate sector as transaction volumes take a downward leap. The trend is clear seeing that estate project launches have been the least during the second quarter from 01st April 2011 to 30th June 2011. As many as 46,093 high rise apartments were launched between January 2005 till December 2010. Of these, the highest launches were during the third quarter (July to September) when over 41% highrise homes were announced in the city. In contrast, the lowest launches came in the second quarter when the launch of only 5,448 apartments that is 11.82 % were launched.
When asked why home buyers postpone purchases, real estate analysts blames it on the roasting heat and summer vacations. “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.
According to the launch figures, the next highest number of launches of 13,814 apartments comes in the first quarter. Also, over 16 per cent announces were seen in the last quarter from October to December. The phase from January to March is the time for financial closures and, hence, it boosts transaction volumes. On the other hand, the winter months see a large inflow of non-resident Indians arriving back in India to visit relatives. The transaction volumes at this time are mainly due to NRI purchases.