As Dussehra ends and Diwali approaches, people are finally taking that all-important decision to buy a house. All caution has not, however, been abandoned as buyers are shifting focus to ready-to-move homes from under-construction properties, not willing to take risks with delayed delivery. Realty trends indicate that buyers are more than willing to push the cheque if the developer can offer them the key to the house.
Realty experts agree that the sales have improved this year, registering a 10% to 15% rise – especially when it comes to housing accommodation that costs less than Rs 1 crore. The reason? Developers are concentrating on handing over possession instead of announcing new launches.
Even if one were to look at residential activity in Gurgaon and Noida markets, there is traction in ready-to-move-in properties as prices have considerably corrected over 2012 levels. The same is not true for units that are still under construction.
There is an improvement of about 10% to 15% in sentiment compared to last year. Going forward, the demand will be good despite supply coming in certain places as prices will continue to remain flat, says Shveta Jain of Cushman & Wakefield.
According to Pankaj Kapoor, managing director, Liases Foras, there is positivity in the market and the momentum will continue for a few more quarters. “Sales have started improving too. There has been a 10% to 15% quarterly improvement in terms of sales, mostly in the below Rs 1 crore segment across cities. As far as unsold inventory is concerned, it is the highest at this juncture and will continue to grow. The total unsold stock currently is around 11 lakh units across the country with Mumbai sitting on unsold inventory of 2.4 lakh units and NCR on 3.4 lakh units,” Kapoor says.
Developers too have been proactive on the sales front and are offering discounts, freebies and other lucrative offers to buyers. The icing on the cake has been the increase in the number of possessions this season.
Manoj Gaur, president Credai NCR and managing director, Gaursons India Ltd claims that during Navratra the company made 131 bookings across four of its projects; Gaur City, Gaur Atulyam, Gaur Saundaryam and Gaur Sportswood. The numbers are up considerably when compared to non-festive days. During this season, compared to last year, we saw a growth of almost 25% in sales,” he claims. Gaursons is offered possession of around 200 units during the festive season.
Ashok Gupta, CMD of Ajnara India Ltd, says the market has responded positively. “Across all our ongoing projects, we made 105 bookings during the Navratra and are hoping that the number will double by Diwali.” The company is offering possession of about 80 units. “We have been on a delivery spree for the last several months and have fast-tracked the process to ensure that buyers get possession during the festive season,” adds Gupta.
Antriksh India also had around 65 bookings during this season. The Saya Group managed 46 bookings from two of its projects. “It is extremely important to make full use of the festive season by offering interesting deals to customers to multiply sales,” says Rakesh Yadav, chairman, Antriksh India.
Explaining why there is a spike in sale of properties, Jain says that potential buyers usually withhold making any decisions in a year until the festive season. That’s because property is a big ticket item and sealing a deal around the Navratra or Diwali is considered ‘auspicious’.
“The sales have definitely improved this year. And that is primarily due to the fact that real estate prices have corrected. That is encouraging end-users to fast track their decision-making,” she adds
Going forward, demand for real estate will be good despite more supply coming in but that will not impact prices, which will continue to remain flat, she says.