Post demonetisation, the realty sector is slowly reviving itself also with the buyers getting ready to invest and what better period than Gudi Padwa (Ugadi in AP, Telangana and Karnataka) to set the ball rolling for the industry that was reeling under a slowdown, right? Developers have often banked upon auspicious occasions to increase their bookings.“This Gudi Padwa is no different, except for the fact that the real estate market has been sluggish post demonetisation and the bookings did come down by an average of 30 to 40 per cent,“ says Kalpesh Dave, head corporate planning and strategy, Aspire Housing Finance Corporation Ltd.
Gudi Padwa is also the most awaited time for home-buyers looking at investing into property purchase for the first time rather than those who have been active in the market. “With an accelerated demand for affordable and premium projects and provisions such as conferring an infrastructure status to affordable projects and the 60 day clearance, developers are looking at catering to more potential buyers along with building inexpensive and reasonable homes. This is a clear sign that the market is drifting towards a positive change,“ says Vijay B Pawar, founder and director, Mirador Dwellers Pvt Ltd.
This year, Gudi Padwa has come after a very positive union budget, which promotes affordable housing in an unprecedented way. “The home rates have not increased much in the last 12 months. The bank interest rates on home loans are set to go down, thus improving the purchasing power of customers. The Pradhan Mantri Aawas Yojana offers a huge benefit to first time home buyers. This has created a lot of positivity in the affordable real estate market,“ says Amit Haware, CEO and joint MD, Haware Properties.
Additionally, Dave points out how the government has taken several measures in the union budget such as reducing the holding period of long-term capital gains tax on the sale of immovable assets and giving a one year tax holiday on the notional rental income post the completion of the project, which are expected to provide a boost to the real estate sector.With the central government taking bold steps for the real estate sector like RERA, GST and the new housing scheme in the union budget this year, experts believe that the demonetisation effect has been overshadowed, thereby setting the tempo for investing in real estate.
Since a large number of property buyers and investors hold a deep emotional connect with the acquisition of a property on auspicious festive dates, activity levels in the property sphere upsurge perceptibly around this period. Customers have more sentiments and emotions attached towards property purchase as they are investing their lifetime savings into it. “They already make up their minds to book their dream home on Gudi Padwa. Buyers wait for Gudi Padwa, as they know that builders will come up with new schemes.
Since it is a buyer’s market, developers are coming up with new offers to lure them,“ says Parth Mehta, managing director, Paradigm Realty. The current sluggishness in real estate may be good for potential home-buyers. In order to drive sales, the developers are certain to woo them with a lot of schemes like gold coins; stamp duty borne by the developer; a family holiday; free furniture; consumer durables; an equipped kitchen; etc. “With Gudi Padwa around the corner, a buyer should look at readyto-move-in apartments and developments nearing possession.
Clubbed with these are festive offers like customised and easy payment schemes; low interest rates on loans; free lifestyle installations; cash back offers among others; where home-buyers can actually get the best deals during the festive season,“ says Amit Parsuramka, CMO, Omkar Realtors & Developers.
This season offers a plethora of property options and financing avenues from which the customers have the option to really pick and choose. “Even the home loan lenders, in the big ticket size segment, would come up with various offers on their home loans like EMI holidays; EMI reset waiver of processing fees; waiver of franking and documentation charges and lower interest rates.
The borrowers need to read the fine print before getting drawn in and need to be well-researched and prepared so as to avoid getting a raw deal under the pretext of attractive schemes,“ concludes Dave.
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