In Mumbai: It’s raining offers, builders hope for Gudi Padwa boost
Builders in Mumbai are offering attractive discounts nd gifts to boost realty sales in Gudi Padwamumbai Updated: Mar 27, 2017 21:11 IST
Gold coins, cash discounts and foreign trips — developers in Mumbai are going all out to woo buyers and boost sales ahead of the Maharashtrian new year Gudi Padwa, on Tuesday.
Maharashtrians consider Gudi Padwa an auspicious day to invest in property. The sector, which has been severely hit over the past few years by stringent bank loan conditions, unaffordable rates and a general slowdown of the economy, relies on festive days like these for a much-needed push. And builders are lapping up the chance.
The Oyster Group, for instance, is offering buyers 10-20gm of gold for purchases made in all its suburban projects; the Dosti Group is offering discounts up to Rs40 lakh for its Wadala project; Ruparel Realty has launched its Kandivli projects at prices starting from Rs70 lakh, buyers will also get a new car on every booking; Satyam Developers is offering foreign holiday packages to buyers of its Navi Mumbai projects.
The schemes come at a time of renewed interest among buyers, according to the Maharashtra Chambers of Housing Industry (MCHI). “Buyers have realised prices have stabilised and there will no longer be any reduction. This is the right time to buy, considering the various incentives builders are giving,” said Tejas Vyas, chairman, exhibition committee, MCHI and director of the Oyster Group.
Before recession set into the sector, Gudi Padwa would see record sales with several builders lining up launches. However, in the past few years, buyers’ sentiment has been subdued. Experts said things are improving, after a demonetisation briefly hit sales .
According to Liases Foras, a real estate research group, this year’s Gudi Padwa will see a marked improvement in sales. “We are looking at new launches and schemes to lure buyers. We also have builders reducing the size of apartments and bearing the burden of EMI’s for buyers,” said Pankaj Kapoor, CEO, Liases Foras.
Problems that the real estate sector faces
Unaffordable prices: Builders jacked up prices to exorbitant levels, putting houses out of the buyers’ reach.
Stringent bank loan conditions: Banks imposed stringent conditions to avail loans. In addition, interest rates were increased considerably. However, interest rates are coming down gradually.
Red tapism: Approvals take years and the project costs increase drastically.
Overall slowdown in economy: The last few years has witnessed job losses as well as a hike in the process of essential commodities, thus forcing buyers to postpone their plans.