By: Ravi Sinha
Track2Realty Exclusive: Navratra is all about nine days of festivities with 10th day being celebrated as Dussehra, which means end of 10 evils. In terms of its significance for real estate market which has weathered many challenges borne out of bearish macro-economic sentiments leading to slow sales, squeezed funding and inventory hangover, this Navratra seems to be the turnaround time.
It is expected that the festivals will be the beginning of the revival of the fortunes of the sector in general and the housing market in particular. There are not one or two indicators behind this optimism and high confidence index within the built environment, but 10 reasons to resonate with the festival of 10 days.
First and foremost is the stable government leading to end of policy logjam; second is the high confidence index of the buyers; third is improving GDP numbers; fourth is investment inflow in the market leading to Sensex breaching all time high; fifth is stabilising job market which brings home buyers in the market; sixth is expected downward movement of interest rates; seventh reason is inflation in check if not curbed; eighth is Real Estate Investment Trust (REIT) becoming a reality; ninth is the expected Public Private Partnership (PPP) for the creation of smart cities and the tenth reason is the government’s focus on infrastructure development that is a key determinant for the growth of the real estate market.
The real estate market is hence elated in the India’s financial capital Mumbai. Rohit Poddar, Managing Director, Poddar Developers agrees with the 10 bonanza leading to the revival of the real estate market. He says based on data and the view of experts, the GDP has grown by 5.7% in Q1 of this financial year which is substantially higher than the preceding 8 quarters.
Additionally, the stock market is at an all-time high and business sentiment has improved substantially. Real estate is a derived demand and hence the above will spill over into the realty sector in the foreseeable future. Hence this is an ideal time to buy a home, especially in the affordable housing sector being a highly auspicious time is also important.
“Real estate is a derived demand and hence will do well as a sector when the economy grows, the interest rates are lower and inflation is under control and below 5%. Savings will increase and people will either buy their first home or invest in the sector which has always provided excellent medium and long term returns and security. There are also several special offers this Navratra and customers can be encouraged to take advantage of the festive offers to secure a great deal and great investment,” says Podar.
Abhay Kumar, CMD of Grih Pravesh Buildteck also expects good times for buyers as well as developers this Navratra due to various reasons. He says there are lots of funds sitting on fence to enter the market since these funds have been on hold for quite some time. Navratra is a festival after shradh fortnight which is considered to be inauspicious among Hindus and fifteen days backlog too plays in sudden rise in sales.
Stock market rally too can act as a catalyst as one can see some funds percolating from stock market to real estate. Most importantly, people wait for this festive season to avail discounts, freebies and incentives in real estate and builders too plan such measures to take advantage of the annual trend of fresh buying in real estate.
“Long term measures to benefit real estate can be reduction in prices by various means like reduction in interest rate, developing new SEZs or other economic zones, developing new cities and increase in purchasing power. Overall economic growth can have long term benefit on real estate. Builders would certainly do their bit to boost the realty in short term by festive offers in terms of discounts, freebies and other incentives. But one step by government can bring back great cheer to the market is reduction in the interest rate by the RBI,” says Abhay.
Kishor Pate, CMD, Amit Enterprises Housing maintains the overall mood that greets this year’s Navratra is very different than in previous years. The traditional rise in property purchases will be very much in evidence because the cloud of gloom and hesitancy that had overshadowed the nation’s real estate market since 2010 has finally lifted. Investment in homes once again makes sense, and the Navratra period is considered an auspicious for it. This combination of drivers will result in significantly increased activity this year.
“The election of a strong and real estate-friendly government into power has been a game changer, as has the very positive budget that was recently announced. The bourses have picked up pace, sentiment is high and Indians are once again confident about their finances. Also, the budget has made availing of home loans attractive again. These have been the major sentiment influencers in the most recent times. Over the long term, the incumbent government’s obvious focus on infrastructure creation, subduing of inflation and bringing about economic stability and growth provide a very positive forward-looking scenario for the real estate sector this Navratra,” says Pate.
Hiral Sheth, Director – Marketing with Sheth Creators adds that the festivities have always attracted consumers to invest in real estate. The traditional mindset of the consumers has always been of festivities bringing in auspiciousness in life. Hence, there has always been a demand of real estate during such festival days. 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.
“Real estate has rapidly emerged as a mode of investment and it tops the investment priority list. With the festivities round the corner we are foreseeing an elevation in the sector. This festivity will surely bring a new thrust into the real estate market. With developers offering value added services in terms of infrastructure and amenities as an incentive to their investment, buyers will be keen for investing during this festive season. Connectivity and Social Infrastructure will also add as the key pointers to add value of the property, says Sheth.
Siddharth Bhatia, Marketing Head, Wadhwa Group concludes that the real estate sector has always witnessed a growth during festive seasons. It is a lucrative period for both the buyers and the developers. Most of the buyers who are prudent with their purchasing decisions are in search of developers offering the best deals and freeze on their investment decisions during this auspicious time.
So, the ten days festivals have 10 reasons to be euphoric this Navratra and it is only the beginning of a long festive season ahead. Mumbai real estate is gearing up for a giant leap ahead.
1o reasons to celebrate 10 days festivals
- Stable government leading to end of policy logjam
- High confidence index of the buyers
- Improving GDP numbers
- Investment inflow in the market leading to Sensex breaching all time high
- Stabilising job market which brings home buyers in the market
- Expected downward movement of interest rates
- Inflation in check if not curbed
- Real Estate Investment Trust (REIT) becoming a reality
- Expected Public Private Partnership (PPP) for the creation of smart cities
- Government’s focus on infrastructure development as a key determinant for the growth of the real estate market
