Track2Realty Exclusive: Akshay Tirtiya holds special significance in Gujarat both for the traditional Gujaratis as well as the youngsters with the modern outlook to the culture and traditions. This festival is seen as the right time to acquire assets and traditionally the business of gold touches a new high on the day of Akshay Tirtiya.
However, this year on Akshay Tirtiya it is the real estate that is expected to touch a new high and the developers confirm that many deals are being sealed to make a formal booking on the festive date. It seems the outlook towards wealth acquisition is fast changing in Gujarat in favour of real estate than gold.
Part of this change in the aspiration and choice of property over gold is due to the realisation that real estate is a better investment option and partly the high gold prices have deterred the Gujarati investors. Moreover, with most of the youngsters opting for nuclear families the demand of new homes is ever increasing and the deep rooted faith in Akshay Tirtiya only acts as a catalyst to wait for the auspicious date to make the investment.
Even women who have traditionally been gold buyers are today opting for a piece of real estate as the investment choice. As per a study by the ASSOCHAM, young working women prefer real estate over gold as their investment.
Analysts tracking the Gujarat market maintain that this is a highly tradition-oriented market, and people have always been on the buying spree during Akshay Tirtiya, with a small component of this investment falling into real estate due to its sheer size. However, what has changed, of late, is the fact that nowadays buyers wait for Akshay Tirtiya and property investment is very high during the festive spirit.
Most Gujaratis are any way inclined to link property possession with auspicious dates and Akshay Tirtiya is one such important date other than Navratra. Though the same tradition has been following for years, nowadays major property buying occurs during festive times, especially Akshay Tritiya.
A lot of buyers prefer to wait for an auspicious occasion like Akshay Tirtiya to make new investments in realty. There are definitely a large number of buyers, who want to have the satisfaction of at least getting possession of their dream homes on this day. This year the market analysts believe some new offers, freebies and marketing innovations will ignite the subdued market and change the sentiments to positive.
Many even believe this will be the beginning of the revival of property market of Gujarat. This optimism also stems from the fact that immediately after the Akshay Tirtiya there will be a new government taking charge of office at Centre and thereafter the direction of both the economy and the real estate market is expected to go northwards. Hence, this Akshay Tirtiya is the right time to buy property as the inventory may not be at this price point again in future.
Manju Yagnik, Vice Chairperson, Nahar Group maintains that 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.
“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. We expect 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. New launches and offers can also be expected from developers on this occasion,” says Yagnik.
Dibyendu Banerjea, CEO West Zone, Pashmina Developers agrees 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.
“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 capitalise on these festive sentiments via increased marketing efforts. In that respect, festivals like Akshay Tirtiya can act as a powerful market force,” says Banerjea.
However, Manan Choksi, Regional Director, RE?MAX MGM does not feel gold and property investment on Akshay Tirtiya has any co-relation. According to him, while the gold investment on the festival is by small investors, property acquisition is a much bigger investment by those who have plans beforehand.
“Normally when the gold prices are high, people tend to look for other investment instruments. Similarly, when the property prices are high, people do not want to invest. At this moment, prices are any way moving in the same direction for both the gold and real estate,” says Choksi.
It is not just the domestic market of Gujarat that is so upbeat on property acquisition this Akshay Tirtiya, but even the non resident Gujaratis have a strong emotional connection with the festival. If the enquiry level with various developers in the prime markets of Ahmedabad and Vadodara are any indication, many of these expat Gujaratis are on the lookout for right kind of property to make their bookings on the festive day. It is noteworthy that even in the wake of rupee depreciating against the dollar that led to the expectations of NRIs investing in Indian real estate, Gujarat has been the front runner in the expats investing in the property while other markets just kept expecting that to happen.
“Festive time of Akshay Tirtiya brings in the positive sentiments. Even the NRI demand for properties during this time is quite high. The real estate sector definitely witnesses an increase in the number of buyers closing the deal. The past sales record of the property market have spotted adequate rise in the number of home aspirers finalising deal on their dream projects. Buyers wait for a favourable period for booking and their demand is centric to value for money. If the project is valuable and has amenities, investors are definitely willing to pay more,” says a broker active in both the Ahmedabad and Vadodara market.
So, the Gujarat property market waiting for a turnaround has a date with Akshay Tirtiya. Many believe that the investment this year will shift from gold to real estate and that will be the beginning of the revival of Gujarat real estate market. This optimism has some sound market fundamentals and some high emotional quotient. But the emotional connection with the festive spirit of Akshay Tirtiya is definitely driving the investors to Gujarat property market.
