Gudi Padwa this year was a day of some harsh realities for the real-estate sector.
The Marathi New Year Day, generally considered auspicious to buy property and gold, passed by on Saturday with tepid property deals.
“Generally, sales go up on festive season. However, the response was not satisfactory this time,” Sunil Mantri, president of NAREDCO, confirmed to dna.
Sky-rocketing prices are forcing people to look at the affordable segment. “People want to buy 1 and 2BHK houses rather than big ones,” Shailesh Puranik, Managing Director, Puranik Developer, said. More deals are happening in the affordable segment, he said.
To allure buyers, developers have been offering various discounts and schemes. Waiver of stamp duty registration fee, attractive financial options, gold coins, pay 5% now and the rest later all form part of various schemes.
“But investors are not excited. Investment in property seems to be the last option for people now,” said Pankaj Kapoor, MD of real-estate firm Liases Foras.
“Investors never put money when the market nosedives, they invest when the market surges. The sentiments are not good now. That’s why buyers are not turning up even onGudi Padwa day,” Kapoor said.
“Builders are constructing small and affordable houses. This is an indication that the market is changing. If the current situation prevails, correction will happen. People are in a wait-and-watch situation now,” Kapoor added.
A developer who dna spoke to said it will take at least two more years for the market to pick up.
“The state government is formulating new housing and development control policies. It will at least take two years for all these new policies to come into effect. Therefore, for two years, the market will remain stagnant. If the government policies are positive, the market may pick up in future,” he said.