News Point: For the first time homebuyers and end users, it is equal opportunity market in Mumbai.
Recently a homebuyer asked a very basic question to a consultant as to whether he should buy an apartment on Akshay Tritiya this year. The buyer, Dharmesh Verma, believes in the auspicious spirit of the festival but his question was more on the timing, keeping in mind price index which has time and again been projected to correct. Most of the homebuyers, especially the first timers, get confused between the reports of correction and the ground realities.
The answer that the homebuyer got was even more basic but that explains the ground realities of the housing market dynamics at any given point of time. It is even more true in case of Mumbai today where the property market is equally poised and the rental values are rising; thus making sense for property purchase now.
“If you are an end user do not give any other thought and buy it now. But if you are an investor the answer depends upon your investment horizon. As an end user the market may not be the same for you again in Mumbai,” was the suggestion.
“This is going to be my first property and hence lots of questions in my mind are quite natural. But I have been advised by a number of experts that for an end user who is looking for a house to stay, this is the best time to buy. Pricing index and its movement is something that should bother the investors and not the end users. Over a long period of time appreciation is quite natural since the price point is very attractive at this point of time across the Mumbai Metropolitan Region (MMR),” says Verma.
Opportunity cost & benefit
- Mumbai property equal opportunity market on Akshay Tritiya
- Price point attractive, near-completion & ready to move options available
- Salary hike this month catalysts to drive property market
- A price hike post Akshay Tritiya on the cards
The slow moving market and slow pace of appreciation across the MMR might deter the spirit of the investors who have invested in multiple of properties, but not to the first time homebuyers. As a matter of fact, for the end users this is an equal opportunity market in Mumbai today as many near completion and ready to move properties are on offer. The best part is that the price point is today so very balanced that it may not be so post the Akshay Tritiya, keeping in mind the demand & supply equilibrium and the improving macro economic outlook.
Most of the analysts tracking the city property market maintain that the way economy is now consolidating and the new launches are lesser due to policy ambiguities along with hike in Ready Reckoner rates, a price appreciation post Akshay Tritiya is very much on the cards. The developers, on their part, have ignored the market signals and kept the price hike on hold since they have weathered a long spell of slowdown.
Manju Yagnik, Vice Chairperson of Nahar Group points out that the rates for the real estate have been quite stable for the last 18 months and this will remain unchanged for Akshay Tritiya. Of course, in most of the cases the revision has happened post Gudi Padwa. However developers usually come up with schemes and short-term incentives which are time bound to facilitate the buyers during this period.
“It is a strong belief that high value purchase on Akshay Tritiya brings in good luck. The market is witness to a lot of important transaction, purchase and launches taking place during this period. Purchase of home, which is once in life time occasion in most of the cases, is preferred to be bought during Akshay Tritiya. Developers also prefer to launch new projects on Akshay Tritiya as it brings in good luck. Considering all these factors, a buyer gets several options and choice of projects along with the advantage of launch rates which are slightly lower than the normal rate. For people looking at moving into ready to move apartments, they can take the advantage of ready facilities without waiting and moving into their own house on this auspicious occasion,” says Yagnik.
Dibyendu Banerjea, Director of Nouam 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 consumers. Festivals are considered to be prosperous and promising time for investments, especially Akshay Tritiya.
“Indian property market in recent times have witnessed an upward trend in terms of enquires and sales. Since, Akshay Tritiya is considered as an auspicious occasion for wealth creation and good fortune, developers at this time seek to capitalise on these festive sentiments via increased marketing efforts. In that respect, festivals like Akshaya Tritiya can act as a powerful market force,” says Banerjea.
Historically the festivals like Navratra, Diwali, Gudi Padwa and Akshay Tritiya have been powerful magnet to bring the homebuyers into the market. However, this time Akshay Tritiya makes even more sense because it is not only the festive spirit but the market momentum that is also poised to be in favour of the homebuyers. It is not something that Mumbai property market is always witness to, as the demand & supply dynamics more often than not keeps the market momentum tilted towards the sellers.
There is one more reason that promises to make this Akshay Tritiya count in Mumbai market. This year the salary appraisals have been quite decent in Mumbai and most of the industries have been witness to salary hike in the double digit. So, the newly found salary growth along with the luxury of choices in the property market makes it an ideal time for the prospective homebuyers to book an apartment now.
The catch here is the price point and the stage of construction of the properties across the MMR. The fundamentals are then proving to be catalyst to spurt the property transactions. Collectively, it looks like Akshay Tritiya this year might change the spell of slowdown in the Mumbai property market.
