Track2Realty Exclusive: To say that the property market of Mumbai has been subdued for quite some time would be stating the obvious. Reports of inventory pile up and appreciation despite slow sales have only made the sentiments bearish. The macro-economic outlook in the last over a year has also not supported the cause of real estate market in the city. Amidst this gloomy scenario, comes the festival of Akshay Tirtiya which has traditionally been known for property acquisition in the city.
It has not only got the emotional high quotient to ignite the buyers’ psychology but on many occasions have been catalyst to the revival of the market as well. Will Akshay Tirtiya revive the Mumbai property market this year too is a question that is on everyone’s lips in the city of Mumbai.
Analysts tracking the property market in this part of the world maintain that the indications are definitely positive on the eve of Akshay Tirtiya. It is generally believed that the property market will be more receptive on this Akshay Tirtiya and the beginning of the revival of Mumbai property market seems to be on the cards. This optimism stems from a number of facts that suggest the festival of Akshay Tirtiya to be the focal point of the property market movement.
First and foremost lies the fact that the property cycle has already touched its rock bottom in terms of sentiments and transactions in Mumbai and the only way it can go is up. Everyone in the market, buyers, developers & analysts, understand that post the results of general elections the market will rally fast with a new government in the office. That definitely makes it the right time to buy, and what better can be the time than the festive spirit of Akshay Tirtiya.
Developers on their part also sound bullish after a long phase of living with a stagnant market. They believe right from the emotional factors behind property purchase on Akshay Tirtiya, the fundamental logic of economics also suggests that the time has come for picking the right property now. The wishful thoughts, and a few reports, of price correction have only led the buyers to shell out more money as in the final cycle of demand and supply that defines market price point, supply in a city like Mumbai has always been less than the demand for property.
Manju Yagnik, Vice Chairperson, Nahar Group agrees that like past this year too the occasion of Akshay Tirtiya is expected to bring in the much needed positivity and vibrancy in the real estate sector. She expects that home buyers who have been holding on their plan to buy new homes will go ahead with their decision to buy home on this auspicious occasion. Expecting some new launches and offers on this occasion, she feels the market is poised to go northwards on Akshay Tirtiya.
“Akshay Tirtiya is one of the auspicious occasions as per the Hindu calendar. Akshay Tirtiya is mainly an auspicious time for buying gold but with the changing times, people look out for more returns in investment and thus real estate is another investment that people look out for. In the past the real estate market has been receptive to this occasion. Both the developers and the home buyers have shown immense interest in property transactions on this occasion, thereby making Akshay Tirtiya an important occasion for the real estate market,” says Yagnik.
Hiral Sheth, Director, Marketing, Sheth Creators also maintains that in a country like India, festivities fetch requisite reprise to the market sentiments. Investing in real estate is considered to be auspicious during this time. The demand in Mumbai realty market has been stable but festive spirit is bound to bring in new array of demand for the housing projects.
“In fact festivities are an ideal time to invest in real estate. Hence this period records maximum number of bookings for project catering to the diverse needs of the market segment. With the positive outlook in the minds of the investors, this will further boost the buyer sentiment,” says Sheth.
There are some developers who confirm more enquiries have already indicated the market sentiments on the eve of Akshay Tirtiya. Some of the brokers and analysts maintain that even if some of these enquiries are translated into sales the market will be back on its zing. To add to it, some marketing offers immediately before the festival can also bring the fence sitting buyers back to the market.
Dibyendu Banerjea, CEO West Zone, Pashmina Developers feels that home buying is a very important decision as it involves an emotional as well as a rational aspect in the minds of Indian consumer. Festivals are considered to be prosperous and promising time for investments, especially Akshay Tirtiya.
‘Indian property market in recent years have witnessed an upward trend in terms of enquires and sales. Since, Akshay Tirtiya is considered as an auspicious occasion for wealth creation and good fortune, developers at this time seek to capitalize on these festive sentiments via increased marketing efforts. In that respect, festivals like Akshaya Tirtiya can act as a powerful market force,” says Banerjea.
Dhruv Jaywant, CMO, Ahuja Constructions agrees that the real estate market is very receptive this Akshay Tirtiya. According to him, India is a highly tradition-oriented country, and property buyers do respond to the upbeat sentiments of Akshay Tirtiya. Most Indians are inclined to link property possession with auspicious dates. The same tradition has been following in Mumbai for years.
“Every year major buying occurs during festive times, especially Akshay Tirtiya. A lot of buyers prefer to wait for an auspicious occasion like Akshay Tirtiya to make new investments in realty. There is definitely a large number of buyers, who want to have the satisfaction of at least getting possession of their dream homes on this day,” says Jaywant.
Akshay Tirtiya may not see very many new launches this year, as has been the trend in the last few years, yet the prudence of the developers to focus on the sales than new launches suggests that revival is on the cards. Add the emerging macro-economic outlook post the elections to this, and it seems the buyers’ sentiments are going to have a 360 degree change. Akshay Tirtiya is going to be the beginning of this and the festival holds the potential to reignite the property market.
