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Developers are gearing up for new launches ahead of the auspicious occasion of Gudi Padwa in western India and Navraatras in the North . While developers are positive about new launches, analyst warn of tepid sales as real estate is still witnessing course-correction.
Both Gudi Padwa and Chaaitra Navratraas, which fall on March 18 this year, is an occasion which drives up sales. Developers are wooing buyers with discounts, year-long free maintenance, hotel memberships, gold coins, modular fixtures, and no-GST charges.
More than monetary value
“Home buying in India not just holds monetary value, but is attached to a happiness sentiment of one’s dream home. Home-buying experience on these three-in-one auspicious festive day of GudiPadwa, ChetiChand, and Ugadi is looked upon as an extremely important and favourable season to buy one’s dream home.
“The sector is on the revival mode and market conditions are favourable, with home loan interest at an all-time low, choice of apartments available in the market, and government’s interest subsidy to meet the ‘housing for all’ objective,” Niranjan Hiranandani, Founder and MD, Hiranandani Group, said.
Farshid Cooper, MD, Spenta Corporation, said, “Every year on the occasion of Gudi Padwa, we witness an increase in the number of enquires and sales. This year, we plan a special experience for our buyers at Chembur by offering 20 gm, 40 gm, and 60 gm gold for the purchase of 1BHK, 2BHK and 3BHK apartments, respectively.”
Analyst and market-watchers are pinning hope on affordable housing, which is seeing growth within the residential real estate category.
Several real estate developers are also repackaging their existing projects and offering schemes to woo buyers. After the RERA Act, the real estate sector has been battling to stay afloat and Gudi Padwa could help prop up their falling business.
Anuj Puri, Chairman, Anarock Property Consultant, said, “Traditionally, the Gudi Padwa festival season is an auspicious time to invest in real estate. Considered a time of renewal, it coincides with Punjab’s Baisakhi, Tamil Nadu’s Puthandu, Andhra Pradesh’s Yugadi and Kerala’s Vishu.
“Since a large cross-section of Indians tend to link property acquisition with auspicious dates, activity levels on the property market tended to increase visibly in this period. However, Gudi Padwa 2018 is not likely to bring the accustomed uptick, which, though almost non-existent even in the last two to three years, arrives in the backdrop of a more complex set of challenges than ever before.”
Slowing down
The residential real estate market in many cities has been slowing down, and developers are hoping that Gudi Padwa will prove to be a turning point for many developers who have been struggling with slow sales, policy-induced compliance pressures and negative market sentiment.
A look at the first quarter figures of the past few years indicates that sales halved from 90,000 units in Q1 2015 to 45,000 units in Q1 2017, demonstrating a shift in buyer behaviour amidst changing market conditions.
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