Gudi Padwa fails to bring cheer to realty market | mumbai | Hindustan Times
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Gudi Padwa fails to bring cheer to realty market

Gudi Padwa, the Maharashtrian New Year is usually a special time for the real estate industry with developers launching their projects, attractive discounts being offered and buyers making a beeline for purchases.

mumbai Updated: Mar 13, 2010 02:19 IST
Naresh Kamath

Gudi Padwa, the Maharashtrian New Year is usually a special time for the real estate industry with developers launching their projects, attractive discounts being offered and buyers making a beeline for purchases.

But this year is different. There have been a few nominal launches and only a handful of discounts offered on sales.

Developers say that the slowdown has affected the market this year.

“We have just recovered from the slowdown and are busy completing the old projects,” said Anand Gupta, Secretary, Builders Association of India, the apex body of builders.

“As the financial year is ending this month, the banks are after us to clear our dues. So we have refrained from such perks,” he added.

The Maharashtra Chambers of Housing Industry (MCHI) blamed red tape for the lack of new project launches.

“The authorities take years to pass our building plans and nowadays we have to get clearance from multiple committees, which is again a time consuming process. How can we launch a new project in such circumstances?” said Pravin Doshi, Chairman, MCHI and Chairman, Acme Builders.

In the past, incentives such as cash discounts, free car parking, free vehicles, free stamp duty registration have been given to lure buyers.

This year, few developers such as the Sanghvi Group and M R Realtors have offered cash discounts on purchase.

The Sanghvi Group is offering a cash discount of Rs 3 lakh on purchase in all of its seven projects, which are coming up in Wadala, Dahisar, Mira Road and Kalyan.

“Sales were down last month and this auspicious festival gives us the opportunity to sell our flats,” said Shailesh Sanghvi, Director, Sanghvi Group of Companies.

Similarly M R Realtors is offering a discount of Rs 510 per square feet for its project, Galaxy Royale at Goregaon (W).

Buyers say that developers have already inflated realty prices, which are beyond the reach of the citizens.

“These schemes are just an eyewash and hardly make a difference,” said Manaswi Panchal, who works in the civic body.

Real estate experts said that buyers have become more matured and are no longer enticed by discounts.

“The buyers know that most of the developers have jacked up prices and are waiting for them to come down. They are more interested in the actual value of the flat than these discounts or incentives,” said Sanjay Dutt, chief executive officer (Business), Jones Lang LaSalle Meghraj (JLLM), a leading real estate consultancy firm.