Is Mumbai and Pune market going to see a major change on gudi padwa?
Apr 01, 2014
Source : The Times of India

 

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 attract buyers. There are few projects in Mumbai/Pune, which developers have already launched at competitive price points to shore up sales; in the upcoming festive season, we expect to see consecutive phases launched along with a few new projects.”

However, a few developers could also lower prices so as to enhance sales. The Gudi Padwa period could also see a number of freebies being offered by developers, such as waiver of stamp duty and registration charges along with some white goods or gold as gifts. Such freebies could also result in marginal increase in demand for properties in Mumbai and Pune. Bharat Dhuppar, CMO, Omkar Realtors and Developers, says that “Mumbai and Pune are important markets when it comes to buying of new homes during any auspicious occasion, even on Gudi Padwa. Since, last Diwali was subdued, it is much likely that the Gudi Padwa will surely see rise in sales, in terms of purchase of newer apartments. In both the markets, we expect the sales to move up decently during the festival season due to newer schemes towards attracting the investors still sitting on the fence.”

Traditionally, Gudi Padwa means birth of bhoomi. The property market hopes and looks forward to bright days for the real estate sector, with this auspicious festival. The question is, what are the expectations of the real estate fraternity from Gudi Padwa, this year. Kruti Jain, director, Kumar Urban Development Ltd (KUL), says, “Embarking on the journey in the year 2014, we are betting on vigorous growth prospects of the real estate sector. Traditionally, we Indians have always been an emotional lot, and buying a dream house is usually the biggest investment that a common man makes in his lifetime. So, people always prefer to finalise property deals on an auspicious day like Gudi Padwa as this festival across Mumbai and Pune is said to be the harbinger of luck and prosperity. Even in this technology and information driven age, we have observed that both the older generation as well as the younger generation is equally in sync with their traditions. They still prefer to buy their dream homes on Gudi Padwa.”

Many believe that Gudi Padwa has held its charm over the years even though now the buyers are more pragmatic to not get affected by mere sentiments. It is generally accepted in Maharashtra that people believe in looking for a good ‘mahurat’ for occasions like marriages,starting a business or purchasing a flat. Kishor Pate, CMD – Amit Enterprises Housing Ltd, explains, “In many ways, Pune is still a traditionbound market. The family mindset is still very much intact here, and many home purchase decisions are still taken with due consideration to traditional concepts. The predisposition to book a home on an auspicious date like Gudi Padwa is, therefore, still very much a market reality. That said, the tendency to make tradition-based property purchase decisions is on a decline with the newer generation, which is focused on the overall value for money. Therefore, developers must be able to bring forth the value proposition of their projects during their marketing campaigns for such occasions.”

Anil Pharande, chairman – Pharande Spaces explains, “In Maharashtra, Gudi Padwa is an auspicious date for property acquisition and many home buyers time their purchases to align with it. We will see an increase in such decisions in Pune, but to a lesser extent in Mumbai. This is because homes in Pune and Pimpri-Chinchwad Municipal Corporation are still reasonably priced on a general affordability scale. This is not the case in Mumbai, where people will only react to hard discounts on the exorbitant rates being quoted there.”

Property analysts maintain that traditions still prevail in our society. Today, the new generation of home buyers is more knowledgeable and practical about property matters than the buyers of yester years. They make a detailed study about the market before taking a final decision. However, at the same time, buyers, both young and old, are definitely influenced by a traditional festival like Gudi Padwa. Nikhil Bhatia, head, Western Region, CBRE South Asia Pvt Ltd, says, “I really do not see any significant change happening this GudiPadwa for the Mumbai and Pune market. With the approaching elections next month, people are in a wait-and-watch mode which is expected to remain for the short to medium term.”

Ashok Mohnani – CMD at Ekta World, confirms the same, “I think 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.”

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