Gudi Padwa will boost market sentiments
Apr 01, 2014
Source : The Times of India


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.

Latest Realty News

10 more days for property tax recovery even as fiscal year ends
Apr 01, 2014
KOLHAPUR: The Kolhapur Municipal Corporation (KMC) has extended the recovery period for property tax for ten more days though the financial year ended on March 31.
What is the connection between real estate and elections
Apr 01, 2014
MUMBAI: While all eyes are on the general elections, the real estate sector is holding its breath for the potential optimism that is expected once the results are out. This optimism is expected to boost transactions and lift homebuyer sentiment.
Five risks worrying RBI governor Raghuram Rajan about India
Apr 01, 2014
DELHI: Highlighting that the Reserve Bank of India's (RBI) policy stance will be 'firmly focussed' on keeping the economy on a disinflationary glide path, the central bank governor Raghuram Rajan on Tuesday kept all key rates unchanged in the monetary policy review.
Ahuja Group raises ?60 crore from Motilal Oswal realty fund
Apr 01, 2014
MUMBAI: Motilal Oswal’s second real estate private equity fund called India Realty Excellence Fund II LLP has made a fresh investment of ?60 crore in Mumbai-based developer Ahuja Group’s housing project.
Lift for real estate, jewellery markets on Gudi Padwa
Apr 01, 2014
NASHIK: The real estate sector and the jewellery market saw good business across the city on the occasion of Gudi Padwa on Monday.
Guide to stamp duty for homebuyers
Apr 01, 2014
MUMBAI: Stamp Duty is one of the many expenditures that home buyers pay to own a property. However, most of us don’t know what stamp duty is and what it comprises of. Here is the brief on stamp duty for all the prospective home buyers.
Is Mumbai and Pune market going to see a major change on gudi padwa?
Apr 01, 2014
MUMBAI: “Buyers are back in the housing market!” exclaimed one of the city builders with a sigh of relief and they have enough reasons to be relieved. There is a considerable rise in the sale numbers, compared to January and February. City builders are only hoping that this trend will continue in the coming months as well. Madhurima Basu, director – residential services, Cushman & Wakefield, says, “Increase in demand is expected, due to developers offering discounts and subvention schemes to att
Growth centres planned by state yet to see the light of day
Mar 31, 2014
THANE: The state government's plan to set up growth centres at Bhiwandi, Kalyan-Dombivli and four other locations has developed a hitch.
Civic body to auction 28 blocks in APMC market
Mar 31, 2014
AURANGABAD: The Aurangabad Municipal Corporation (AMC) on Sunday initiated the auction process of 28 blocks belonging to shop owners in the Agriculture Produce Marketing Committee (APMC) complex at Jadhavwadi market after they failed to pay property tax.
Big purchases add sheen to Padwa celebrations today
Mar 31, 2014
PUNE: For Prachi Puranik of Pashan, this year's Gudi Padwa on Monday is particularly special as her family will bring home an SUV.

Latest Realty News Of State

Realty Talk's