PUNE: Gudi Padwa is believed to be the most auspicious time for a ‘new beginning.’ The emotional quotient of buying a property on this propitious day is very strong. Many prospective buyers wait for months and put in all efforts to lock in on a deal, on this day. Developers have come forward to lure the buyers and offer a wide range of properties to every segment, including end-users and investors.
Abhay Kumar, CMD, Grihapravesh Buildteck Pvt Ltd, says, “Gudi Padwa is a Maharashtrian festival, heralding the new year. This period is considered a propitious time for Maharashtrians, for making high-value purchases as well as new investments. Maharashtrians who seek to purchase properties, wait for this period to do that. Demand for properties has always seen an uptrend, during this period. Developers too, on their part, introduce special offers and discounts.”
Experts share that there is a positive sentiment amongst buyers around this time, which is great news, considering that the market is gradually emerging from the slump it has been witnessing for the last three to four years. There is substantial pent-up demand, due to the policy uncertainty and supply constraints. There is hope that this festive season will do well, if there is a turnaround at all in the degree of the market pickup. “Now that the election result impact is discounted, stock markets have crossed the 22,000 mark; inflation is also under control, therefore, Gudi Padwa is going to bring cheers in the market. We are hopeful that the market will improve on this auspicious day, though people are awaiting elections and holding on to their buying decisions till a new government is formed.
Gudi Padwa in Maharashtra, has its own importance and we look forward to this festival, becoming a turning point for the sector, and hope to see increased home buying on this auspicious occasion,” suggests Kruti Jain, director, Kumar Urban Development Ltd.
Festive Season to boost growth in the real estate market
This year, there is an expectation that demand for properties will increase during the festive period. Also, with the further easing of the inflation rates, there is a strong expectation that rates will not be increased in the coming policy decisions. So, buyers and sellers, both, are very optimistic. The recent poll projections, showing the chances of a stable government in the forthcoming elections, have also encouraged the market to take a stride ahead. Rajesh Krishnan, MD and CEO, Brick Eagle Group, opines, “Historically, there’s a 15-25 per cent boost in sales during this season.
However, we expect it to be marginally higher this year. Developers are only beginning to take advantage of the increase in FSI announced by the Maharashtra government, in November last year. While we don’t expect an immediate increase in supply, anticipation of the same might help correct prices across the industry.”
What’s attractive in this year’s festive offer?
On this auspicious occasion, many developers provide festive offers like freebies and discounts, which we can see every year. Gudi Padwa is equally important for the buyers as well as the sellers. Therefore, nobody wants to miss this occasion and thus, put in all efforts to get the best deal done on the precise date. Krishnan further adds how “Given the changes in FSI and the buyer sentiment over the upcoming elections, developers are becoming more flexible and are offering higher discounts, in terms of early bird offers, lower prices, stamp duty relief or freebies, like gold coins, cars or international trips. It’s a buyers’ market and developers will take this opportunity to capitalise on festive sentiments.”
There is a window of opportunity for developers. The market has been facing challenges, given the uncertainty looming over the elections. This is an ideal time for developers to boost their sales by lowering prices under the guise of festive discounts. Leading banks have reduced home loan rates and buyers will take advantage of the same. Gudi Padwa sales should boost the market as a whole and help overcome the challenges posed by election skepticism.
Is it right time to finalize deal?
Buyers including end-users and investors, should certainly take advantage of the festive discounts being offered. Experts suggest that there is also a slew of affordable housing projects coming up in various parts of Mumbai, Pune, etc., that will present a great investment opportunity, given that property prices in the metros have been escalating.
With the support of improving economic conditions and financial stability, the realty market is optimistically looking forward to this period to work as a trigger, and provide momentum to the whole sector. Economists and financial experts strongly believe that the interest rate is heading towards a correction, therefore, the home loan is set to get cheaper in the next half of 2014. The endusers are still holding on to their negotiation power and bargaining cannot be ruled out, even during the festive season. Property sellers are also enthusiastic about the development.
Therefore, after a series of dull months, many new projects are expected to be announced during this festive season. “Generally people are adopting a wait-and-watch approach but fence-sitters will take this festival and the many ongoing offers, as an opportunity to fulfill their dream of buying their home. If one misses out on this opportunity, one will have to buy the same premises at higher prices later,” concludes Jain.