Developers Target Gudipadwa to Launch Projects

Mar 13 2015 : The Times of India (Mumbai)

With the festival of Gudi Padwa approaching soon, developers expect an increase in sales
Gudi Padwa is considered as an auspicious day as it sig nifies new beginnings and is usually earmarked for major purchase decisions. Hence, many builders target this festival to launch their projects in keeping with the local sentiments during this period. Gautam Ahuja, managing director, Ahuja Construction, explains how “The timing of the festival is particularly well-placed this year, in terms of policy decisions by the national and state government. This may be a catalyst for some endusers to reconsider their purchase decisions, as developers generally offer a number of freebies as well as other incentives such as waiver of stamp duty and registration charges, along with some white goods or gold as gifts.“

The festive time definitely boosts the buyers' sentiments towards investment in realty. It is definitely a good opportunity for consumers to rake in festive offers and launches available. Festivities have always attracted consumers to invest in the real estate sector.Ravi Ahuja, executive director-Cushman & Wakefield, explains that “Buyers tend to enter into real estate transactions, which are typically big-ticket in nature, on this day .A few developers also plan their project launch es to coincide with this festive season when demand is usually better. Some developers even offer low down-payment options, discounts and subvention schemes to attract buyers for booking homes on this auspicious day.“ Mayur Shah, managing director, Marathon Group, agrees as he explains how “Purchasing a flat not only involves huge investments but also has a sentimental value attached to it. To optimise on the occasion, new launches are often made by developers on these auspicious days.“

The traditional mindset of the consumers, has always been of festivities bringing in auspiciousness in their lives.Hence, there has always been a demand of real estate during such festival days. According to Hiral Sheth, director, marketing & sales, Sheth Creators, “For the real estate sector, there is a positive outlook this year. It is earmarked for major purchase decisions including home buying, and holds a lot of prominence for developers in Maharashtra.“

Indians are traditional by nature and even younger buyers who are influenced by the older generation, do believe in this being the best time to invest in property or moving into a new house since. Anand Gandhi, director, Sugee Group, avers that “People prefer to wait for this day to finalise their deals. Mumbai has witnessed increasing demand for houses in the central belt. There are several rituals and customs that are associated with the celebration of this festival. So, buying anything precious is attached with many emotions and due to this, property buying increases.“ In the past, the realty sector has witnessed excellent reaction from Marathi customers. Since there are a lot of Maharashtrian families living in areas from Dadar to Thane, developers focus on launching their projects in these areas. So, the developers are expecting to do the same this year too. In Maharashtra, many households use this period for upgrading to more spacious and better-located homes, and even investors are driven by the traditional sentiment as this is a time considered ideal for wealth creation. Anuj Puri, chairman and country head, JLL India, says, “Traditionally, this a time when developers gear up for increasing property buying activity in most Indian markets as this period is considered auspicious for real estate purchase.“

Many property exhibitions during this PIC: SOHAM P phase have been a traction point of getting buyers. These exhibitions provide home buyers and developers an opportunity to come under one roof. Buyers get to interact with developers and they can buy their dream homes from a plethora of choices available. Also, developers give their clients good offers and household products, to at tract customers. The prices of properties do not increase but remain constant as they are often lowered during such festivals. Shailesh Puranik, managing director, Puranik Builders Pvt Ltd, asserts that “Buying a prop erty or entering into a new house always happens on such auspicious occasions. Con sequently , developers also contribute to this festive atmosphere by encouraging major project launches during this period, with the expectation that it will result in a good start with good sales. We are very optimistic about housing demand this year.“

The real estate industry has historically seen a surge of demand on this day com pared to other days of sale. Abhishek Kapoor, partner, Neumec Group, believes that “With most developers offering varied discounts and freebies to attract homebuyers, this is the best time to tap into this opportunity to buy or invest in a new property . Further, the recent RBI announcement of a rate cut of 25 basis points with immediate effect, has made home loans affordable for buyers.“

Hariprakash Pandey, vice-president, finance and investor relations, HDIL, says, “The RBI has cut rates twice in the last one month or so. We expect the mortgage rates to come down and encourage buyers to go for the big loan. The economy is in a revival mode, with the latest consumer price inflation under control and wholesale price inflation being negative. The GDP is poised to grow at 7. 4 per cent. We could sense a resilience of demand in the new environment, which augurs well for real estate. We expect to generate a good amount of enquiries and bookings.“