NASHIK: 2014's Gudi Padwa could signal better movement for the real estate sector in Nashik after a lull that has lasted for over a year-and-a-half. Considered an auspicious occasion for bookings, the past three months leading up to Monday's Gudi Padwa have seen close to 400 flats being booked in the city.
"The festival of Gudi Padwa is well-known as an auspicious occasion to book or buy flats. We are looking at 350 to 400 bookings on Gudi Padwa, on Monday," said Kiran Chavan, outgoing president of the Confederation of Real Estate Developers' Association of India (CREDAI), Nashik.
Kiran Chavan said that these 400 flats worth Rs 100 crore had been booked since January 2014. During Gudi Padwa 2013, around 325 flats worth Rs 81 crore were booked. This Gudi Padwa, real estate businessmen are eying to book 400 flats worth Rs 100 crore.
Chavan told TOI that business did not really take off over the past 12 to 18 months; since end-2012. "There were more ready flats than takers; except a handful of projects, nothing was launched over this time. The situation seems to be improving, albeit gradually. Around three to four new projects were launched in the city recently and around 400 flats have been booked so far in Nashik this year. The number of ready flats lying vacant has come down to 3,600 now, from 10,000 in 2012. We have also been receiving enquiries on flats and the requirement may increase over the next few months," Chavan said.
Nilesh Chavan, president of the Indian Institute of Architects (IIA), Nashik Centre, said, "There are some bookings for flats, although it is comparatively lesser than 2012. Moreover, 10 per cent of the sale is expected in view of Gudi Padwa. The sale is mainly in the smaller segment of flats, with flat sizes ranging up to 750 sq ft and prices in the range of Rs 25 to 35 lakh. But the sale is very low in the segment of bigger flats, above 1,000 to 1,200 sq ft. There are still close to 3,500 ready flats across the city lying unsold. Although new projects are not coming up, small residential projects in the range of 12,000 to 15,000 sq ft are coming up in the city to an extent. Property prices have increased a lot in the past two years, vis-a-vis the payscale of people. Earlier, outskirts like Adgaon, Pathardi and Makhmalabad were areas where the middle-class would prefer buying flats, since the prices there were lower than the rates in the city. Now, real estate prices in these areas too seem to be beyond the buying capacity of the common man," Chavan said.
Land prices in Nashik have increased by three to 20 times in different parts of the city in the past six-seven years; definitely beyond the buying capacity of the middle-class , said real estate watchers. Land prices that were in the range of Rs 1,100 to 15,000 per 'war' (per nine square feet) in different parts of the city in the past six-seven years, have increased today to Rs 10,000 to 35,000 per 'war'.
Apartment prices that were in the range of Rs 1,500 to Rs 2,500 per sq ft in the city six-seven years back have now shot up to Rs 2,700 to Rs 6,000 per sq ft. A mid-sized flat would cost Rs 25-30 lakh in the city area in Nashik. High-end apartments in upmarket areas like Gangapur Road, College Road and Mahatma Nagar come with an asking price tag of Rs 5,000 per to Rs 6,000 per sq ft. The demand, however, is mainly for two and two-and-a-half BHK (bedroom-hall-kitchen) flats. Residential properties in the outskirts of the city like Pathardi, Makhmalabad and Adgaon areas now come at a asking price of Rs 2,700 to Rs 3,500 per sq ft.