Diwali was one of the dimmest for real estate | mumbai | Hindustan Times
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Diwali was one of the dimmest for real estate

mumbai Updated: Dec 09, 2011 01:46 IST
Naresh Kamath

Even as sales in the city’s real estate market continue to be low, it has emerged that this Diwali was one of the least lucrative ones for the market in recent times.

Data collected by financial firm Prabudas Lilladher show that the number of sale registrations in the city in October was recorded as 4,633 — 25% less then the figures for the festive season last year, which saw 5,791 sales deeds.

“The festive season received a tepid response, contrary to builder’s expectations of revival in sales,” said the report released by the firm.

Buyers usually cash in on Diwali to make big purchases, as it is considered an auspicious time. In particular, houses and gold see a steep increase in sales during this festive season. However, skyrocketing real estate prices, coupled with the general economic scenario, have reversed this trend.

“There has definitely been a slowdown in sales, which was evident during the festive season,” said Sukhraj Nahar, director, Nahar group, a leading group of developers.

Experts from the realty industry put the onus of the slowdown on market sentiment. “Homebuyers are waiting for prices to come down, which is a very strong sentiment in the market,” said Prakash Nichanii, CEO of brokerage firm Anchor Property Consultants.

However, builders are ruling out reduction in property rates, blaming rising prices. “All prices, including cost of land and construction, have risen manifold. We cannot decrease prices,” said Nahar.

Paras Gundecha, president of the Maharashtra Chambers of Housing Industry (MHCI) blamed the crisis on authorities. “Permissions have been on standstill for the last one year and there is no new stock in the market,” he said.