Gudi Padwa, in Maharashtra is considered to be the best day to buy or book a property. And with sentiments moving from absolute negative to somewhat positive for the real estate sector, the big question is: will Gudi Padwa bust the negative jinx for Mumbai’s real estate? Developers are hoping that the realty market will witness a rebound and all eyes are now focused on that single day. Mayura Shanbaug Reports...
Gudi Padwa, marks the beginning of the Hindu New Year and is considered to be an auspicious day for new beginnings. And for real estate there is a positive. With marginal interest rate cuts and softening of prices in some pockets, home buyers are on the prowl.
“We are expecting, at the least, a 20% increase in conversion this month as against the previous month because of Gudi Padwa,” says Kruti Kumar Jain, Director, KUL. “There have been steady enquiries for all our new projects in Pune and Mumbai,” she says. Kumar Urban Developers have launched 2 projects in Pune and 2 projects in Mumbai recently.
According to Jain, over the past few years, the market was sluggish for more than one reason. “Sanctions for the projects were hard to come resulting in delays and low supply, which pushed the prices northward,” she says. Buyers who adopted a wait and watch policy will be very happy with the choices that they have now, as permissions have been given to new projects in the last 2-3 months resulting in fresh supply of inventory in the markets,” she adds.
“Although most customers today are in a ‘wait and watch’ mode, generally sentiment on such an auspicious day is high. Therefore, those who have already made up their minds will look to buy their dream home on Gudi Padwa,” says Atul Modak, Vice President, Kohinoor City Project.
“First time buyers, naturally, have more sentiments and emotions attached towards property purchase. For them, it is a new beginning, a new step in life, and so, they would like to take that step on an auspicious day like Gudi Padwa,” he adds. “We are expecting a good flow of customers and are preparing ourselves for it,” he says.
Agreeing that last few years were dull for realty, Sunil Mantri, Chairman of Mantri Realty says, “Even on an occasion like Gudi Padwa, demand was subdued last year. But this year the trend has changed positively and a good number of enquiries are coming in.”
According to him; the “relative drop in interest rates and positive sentiments in general has led to the consumer getting a better deal from developers.
Developers on the other hand are able to give customers a reduction in prices and lucrative offers like 20-80 schemes which they were not able to provide last year. And since it is Gudi Padwa we are expecting a good response,” he says. Mantri Realty is offering a Rs. 500 per sq. ft. discount at their project ‘Serene’ at Goregaon East, especially for Gudi Padwa.
“Overall we expect demand to pick up this year. As prices have slightly softened this year we expect a 25% growth in sales compared to the last year,” says Mantri. As far as response to his new launch goes, Mantri adds, “The response so far is good in Mumbai, we are selling at least 10-15 units per month. And we expect that number to go up.”
Echoing similar sentiments is Sumesh Mishra, Senior VP, Sunteck Realty. According to him, for this Gudi Padwa, buyers who were sitting on fence may be deciding to jump in this season. “I see very positive trends this year as interest rates have gone down by 25 bps in the last 3 months. We are expecting to see a 40% - 60% conversion on our new launches in the next 3 months,” he says.
Mishra says that demand for the super luxury segment is always high; however, he mentioned that the mid segment and luxury segment had to face slowing demand so far. “But with better sentiments prevailing along with fresh supply, even cautious buyers will be able to make a decision,” he says.
So will there be correction in price? “No, says Kruti Kumar Jain. Construction cost have gone up by 150% in the last 10 years and the required number of permissions form government going up, instead of coming down and resulting in low supply and no big projects getting launched, how can there be correction?,” she asks. “It can only happen if there is single window clearance and the inflation situation eases considerably, otherwise I see the price graph going only up,” she adds.
Generally sentiment on such an auspicious day is high.
Vice President, Kohinoor City Project
We are expecting a 20% increase in conversion
Kruti Kumar Jain
Director, Kumar Urban Developers
We expect demand to pick up
Chairman, Mantri Realty