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No Diwali cheer for developers as sales remain low in Mumbai

Diwali is one of the main festivals in India and builders tend to announce new launches

mumbai Updated: Oct 18, 2017 19:47 IST
Naresh Kamath
Naresh Kamath
Hindustan Times
Mumbai,Diwali,real estate
Currently, 2.67 lakh units in the Mumbai Metropolitan Region (MMR) are unsold, while the figure is 1.05 lakh in Mumbai.(FILE)

The ongoing festive season, too, has failed to give the much-needed boost to realty sector, claim developers.

Diwali is one of the main festivals in India and builders tend to announce new launches. Usually, the sales increase by up to 25-30% during Diwali. Currently, 2.67 lakh units in the Mumbai Metropolitan Region (MMR) are unsold, while the figure is 1.05 lakh in Mumbai.

“Sales remained subdued on Dhanteras, which was celebrated on Tuesday. Diwali hasn’t made much difference. It will take some more months for the realty market to stabilise,” said Samantak Das, chief economist and national director, Knight Frank India, a real estate consultancy firm, which tracks the realty market.

Das said the goods and service tax (GST) and the real estate regulator have made builders cautious.

Dharmesh Jain, former president, Maharashtra Chambers of Housing Industry (MCHI-CREDAI) and managing director, Nirmal Lifestyle, said sales have been average so far. “Builders are aligning themselves to the new regime,” said Jain.

Although there were hardly any new launches, builders came up with various offers to woo homebuyers. Some of them include cash discount, no EMIs (equated monthly installments) till possessions, free gold on booking, memberships to elite clubs, and GST waiver.

Liases Foras, a real estate research firm, said huge inventory remains a cause for concern for builders. “Developers are concentrating on selling ready flats, instead of announcing new projects,” said Pankaj Kapoor, CEO, Liases Foras.

First Published: Oct 18, 2017 19:47 IST