By: Ravi Sinha
Track2Realty Exclusive: A festive spirit only adds to the buyers’ sentiments in the property market. It can not be catalyst to new sales if the sentiment in general is low, as has been evident in the property market of Mumbai in the last 3-4 years due to general slowdown and other macroeconomic subdued indicators. However, if the sentiments are bullish a festive season can turn out to be catalyst to market revival as well. That is very much expected in the Mumbai property market this time around, thanks to the change in the overall outlook.
An impression is gaining ground in the Mumbai property market that the stalemate witnessed in the property market over the last few quarters has in fact created a better understanding between both developers and home buyers. The occasion of Gudi Padwa this year has thus come at an appropriate time with fence sitters most likely to buy rather than prolong their wait. Developers are also being flexible and are ready to sit across the table and negotiate with home buyers.
Diipesh Bhagtani, Executive Director, Jaycee Homes believes the RBI’s decision to reduce key interest rate is a major positive for a home buyer. Now, with home loans being available at a cheaper rate, an average middle class home buyer will be able to go ahead with his decision to buy his dream house. Also with the new DCR in place, there is much more clarity for the developer and the buyers alike in what is being sold and what is being bough. We are confident that we will see a marked increase in real estate transactions in the near future.
“Overall sentiments are definitely high on this year’s coming Gudi Padwa as compared to the last few years. 2012 was quite a stressful period for both home buyers and developers alike. On the other hand, 2013 has begun on a positive note with new DCR in place and permissions have started coming and RBI reducing home loan rates. All this will ultimately lead to a better business proposition. So, yes, this year’s Gudi Padwa will definitely be more eventful for the real estate sector,” says Bhagtani.
Kruti Jain, Director, Kumar Urban Development agrees that there are many positives on this Gudi Padwa like reduced interest rates and builder buyer understanding each others’ concerns better. According to her, home buyers and developers happen to be on the same page this year. Also, obtaining home loans will be far easier on the back of RBI’s decision to reduce key interest rate. So, yes, these are certainly positive developments which will go a long way in boosting the prospects of the real estate sector this Gudi Padwa.
“Now it is convenient for middle class home buyers to buy a house as the home loans are available at cheaper rates. One of the positive things that drives home buyer is RBI’s decision to reduce the key interest rate. I also agree that sentiments are high on this year’s Gudi Padwa. Especially on the occasion of Gudi Padwa it gives a boost to the sales. If compared to past years Gudi Padwa sales it is increased by 40% to 45%,” says sales.
However, Manoj John, VP, Corporate Planning & Strategy says the sector is looking forward to get a facelift in terms of policies and regulations as many important Bills have been pending. The easing of liquidity on the back of rate cuts by RBI will be a major benefit as it will lead to reduction of interest rates and benefit the customers.
Atul Modak, Head of Kohinoor City, on the contrary does not agree that sentiments are high on this year’s coming Gudi Padwa as compared to the last few years. According to him, sentiments are more or less the same compared to the last few years. The mindset of the typical buyer has not changed much in recent years. Anyway, Gudi Padwa is fast approaching and the response will speak for itself.
“The reduced interest rate plays a miniscule role while deciding purchase of property, hence it may not have an impact. What is more important to buyers is whether it meets their requirement and whether they like the property. The tax benefit for the property worth less than 25 laths will drive buyers into the market to the fringes of the city,” says Modak.
How much the positive sentiments translate into actual sales, only time will tell. But before the sector does its evaluation and cost-benefit analysis post-Gudi Padwa, the indications suggest the auspicious festival has definitely made all the stake holders bullish for the moment.
