Tag Archives: Diwali

Prolonged festive buying in Coimbatore property

Posted on by Track2Realty

By: Ravi Sinha

Diwali, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty Exclusive: While the property markets in other parts of the country are busy with festive offers, Coimbatore real estate is showing no signs of gift, freebies and other marketing lucrative schemes. Prima facie it may seem like the festive buying of homes is not a reality in this part of the world, and hence no developer is bothered to lure the home buyers with gold coins, cars, foreign tours or outright discount. However, a close look at Coimbatore property market and the buying-selling pattern here tells a different story.

Since piling inventory is not an issue in this market, added to the fact that speculative buying has never gained ground in the city, the property market of Coimbatore has an altogether different relevance of festivals. Does it mean festive buying is not a reality in Coimbatore?

Well, an outside view may find that Coimbatore property market is not goaded by the festive spirit, but the data assessed by Track2Realty finds that nearly 30-40 per cent of the homes are sold during the festivals in this market. Now that is a huge number, something that can make even the over-heated property markets of metro cities look with suspicion. There nevertheless lies a caveat in this statistics; the reason why Coimbatore property looks to be unaffected by the festive spirit buying.

The festive spirit in this market is not confined to Navratra-Diwali period, rather it starts early with Onam and lasts till the South Indian New Year. This prolonged phase of property buying is what makes the festive buying trend of Coimbatore different from other property markets.

Purvankara which has tasted success in Coimbatore market with a couple of projects, of late, seems to agree with this premise that population may be limited in Coimbatore but that does not mean the property market in the city is not festive driven. On the contrary, limited demand-supply keeps the city’s property market an equal opportunity platform for both the buyers as well as the developers.

Purvankara Group CEO, Jackbastian K Nazareth says as a matter of fact, festival buying is more prominent in Coimbatore since it is a traditional and culture conscious society.

“Enquiries have started early and I hope the real booking and buying activity to start this Navratra and the best part is that it continues here till February when the New Year festivities in this part of the world are over. So, it is the extended festivities that is making the Coimbatore realty so bullish in the months ahead. Moreover, unlike some other property markets there is no artificial appreciation during the festivals, it is just the fact that enquiries start getting converted into bookings,” says Nazareth.

Rajsheskhar Koneru – Regional Owner of RE/MAX says in last few months the market has witnessed lukewarm sales. However, with the festivals creeping in the sale is yet to boost in Coimbatore. Apart from this, Coimbatore attract lot many senior citizens who are willing to invest in the property. This has made Coimbatore one of the leading property markets down South.

“Festivals in  Coimbatore begins with Vinayaka Chathurthi and covers Onam, Navarathri and Deepavali  hence the breeze of festivals remain till new year which definitely adds chances for property buyers to get some more deals in this area. Thus, it is helping the overall realty market to prosper,” says Koneru.

This also brings to the table the fundamental question whether there is any connect between Coimbatore property market with the rest of the country as far as festive buying is concerned. Analysts believe a connect of festive spirit between Coimbatore and other markets is as much a reality as a disconnect with the ground realities of overall property buying over here. That also defines why Coimbatore market is not prone to cooling down immediately after the festivals.

Brokers active in the market opine that the home buyers in this market do pre-pone or post-pone their property buying during the festivals, but since it is acquisition for living and not investment, there is hardly any visible sign of waiting for lucrative offers during festivals only to exit in due course. Moreover, the society and culture of Coimbatore has a much strong emotional connect with the home, and hence property is not seen as a trading commodity in this region.

Salarpuria Sattva is a new entrant in the Coimbatore market but claims to be aware of the mood festivities, especially what a festival like Diwali and Sankranthi can bring to Tamil Nadu. They plan to launch their project in November keeping in mind the mood of the buyers. Bijay Agarwal, MD of Salarpuria Sattva though maintain festivals are not just the primary reasons for property purchases- depends on how the economy is doing, local, national as well as global. He nevertheless believes festivals can definitely influence the mood.

“Winter is also the time when there are lot of visitors from other cities and abroad- so we will have to wait and watch. We are entering this market and are keeping our ears on the ground to see how consumers behave through the year. Some national trends are certainly repeated here- like welcoming Lakshmi on the eve of Diwali and making new beginnings through investments during the New Year – Sankranthi,” says Agarwal.

In conclusion, statistics may not give the right answer as to why there has been less property booking in Coimbatore market on festivals, as compared to other property markets. But then the city is just gearing up to a prolonged festive season and in the end the developers in this market may have the broader smile than their peer groups in other glorified markets.

Interestingly, this smile is not coming at the expense of compromising with buyers’ credit reliability and credibility. Nor is it coming at the cost of buyers’ affordability amidst an artificial appreciation during the festivals. And that is what makes festive spirit all the more worth celebration in Coimbatore for both the developers and the buyers.

Real estate sentiments sluggish this Diwali: ASSOCHAM survey

Posted on by Track2Realty

Diwali, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty: Despite aggressive marketing and great offers made by developers on the eve of Diwali festival, the investment in the property have remained lukewarm due to high prices of houses in and around the NCR region. Major factors cited have been high prices of land and the unprecedented rise in the cost of construction materials, iron, cement, labour etc., says the ASSOCHAM survey.

There has been a surge in demand of only 20% on the eve of the festival comparing to the normal average sale per month. The builders and the investors say like in the past they had been expecting 100% jump both in new and the huge inventories lying at the disposal of the developers on the festival seasons.

The survey was carried out in the major cities like Delhi-NCR, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabd, Pune, Chandigarh, Dehradun etc. The survey was able to gather information from 250 property dealers, noted 40 builders/ developers and 20 divisions of housing financing.

Majority of the developers have complaint that the inordinate delays in getting necessary approvals from multiple regulations and authorities result in cost and times overruns. The another factor reported was that in the absence of industry status apathy of banks in financing the real estate projects, adds the ASSOCHAM survey. The resale or secondary market was dull this festival season as there is very little resale going specially in the NCR and surrounding areas which shows that very few investors are there in the market says ASSOCHAM Secretary General D S Rawat while releasing the survey.

The property analysts have predicted that till March next year the demand for plots, houses and flats may drop by at least 15 to 20%. The housing inventory in the NCR area is huge as a large number of projects are coming up in the peripheral areas, said Rawat. Rawat also said although the prices had generally remained stable – both for commercial and residential properties, the lack of buoyancy and weak investor sentiments have added to the woes of developers.

ASSOCHAM report said the government should act as a facilitator rather than a regulator of the real estate projects, particularly where demand is more than supply. Also, all approvals of real estate projects must be accorded in a time bound, accountable and simplifies manner. Process and status of all approvals be made on line so as to bring transparency. The state Governments should complete their land records process and make the same computerized and supporting infrastructure; not only transportation and logistics but also water, power, housing, healthcare and sanitation must be taken up in tandem.

The Government must grant industry status to real estate sector and the real estate projects must be classified as infrastructure and priority lending should be made available for keeping pace with the demand and supply scenario.

Normalcy back to Mumbai real estate this Diwali-I

Posted on by Track2Realty

By: Ravi Sinha

Diwali, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty Exclusive: Mumbai real estate is on its way to bounce back to normalcy this Diwali after a couple of years of turmoil where many economists were clueless as to how a demand-supply product can challenge the conventional wisdom of economics where prices are going northwards and transaction the other way.

However, sector analysts understand that the dynamics of real estate market, though very much a demand-supply driven, are different than any other perishable commodity. And hence Mumbai realty has, of late, surprised all those prophets of doomsday who thought only way for Mumbai was to slip out of India’s leading property market index.

What has changed the Mumbai property market has been a combination of factors-all stake holders getting realistic after the experiment phase post slowdown, new DCR (Development Control Rule) that promises to reshape the city, flexi payment options for buyers, discounts and freebies back in the business and last, but not the least, banks’ changed outlook with being a party to organise property exhibition.

A sample survey by Track2Realty, the real estate market tracker finds buyers who had put the property buying on hold in the last couple of years are in the market with an overall changed outlook.

While more than eight out of ten, 82 per cent, asserts that the new DCR norms are an opportunity to increase the supply in the city, nearly equal number has understood that with ever increasing migration of people looking for a roof over the head, it is a wishful thinking to expect any price reduction. 78 per cent are convinced that it is the right time to buy since price is only going to increase in the year ahead.

Banks’ changed outlook is something that has cheered up nearly seven out of ten buyers, 68 per cent, who are negotiating with the developers for flexi payment options. Nearly similar set of people, 66 per cent, want to make the best of festive offers in terms of discounts and freebies.

Developers also seem to cash on this festive outlook and a number of them rolling out special offers ahead of Diwali at the MCHI-CREDAI’s on-going property exhibition at MMRDA grounds. Free parking space, club membership offers, removing stamp duty-registration and maintenance charges are some of the steps developers are taking to ensure that this Diwali is a happy one for both parties.

The most lucrative offer continues to be a flat discount for spot bookings, with developers waiving off between Rs 200 and Rs 2,000 per square foot, amounting to a reduction of lakhs of rupees in house prices in the sub-Rs 40 lakh category. On October 18, Hubtown launched a lucky draw for its Hubtown Shikhar project, with offer for buyers to win up to 10 kg of silver and other goodies. Sunteck Realty has launched Sunteck City in Goregaon West, wherein it is selling Disney-inspired homes. The Lodha group is giving a 15-20 per cent discount in its Venezia project, where it is quoting Rs 20,970 a sq ft against a market price of Rs 22,000 to Rs 24,000 a sq ft.

“Individual developers are offering their best rates and buyers should make the most of it. The buyers have realised that there is no scope for prices to come down and if they are serious about buying this is the right time to do it,” says Paras Gundecha, MCHI-CREDAI President.

…to be continued

Mumbai realty determined to bounce back this Diwali-I

Posted on by Track2Realty

By: Ravi Sinha

Diwali, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty Exclusive: The Mumbai property market seems to be determined to break the jinx this festive season with new launches, offers, changed marketing formats and even price correction. If the market trend so far is any indication, it is quite apparent that the developers have gone through the learning curve in the last 2-3 years and are now determined to break the jinx. In this endeavour to bounce back, buyers are smiling all their way to property search and in the process the city property market is defying the collective consciousness of being an over-heated realty market.

Sector experts believe the upward trend during the ongoing festive season after a long spell of slowdown due to lack of approvals, high interest rate, price escalation and general downtrend in consumer demand, may be the beginning of a revival in both the fortunes as well as the developers’ overall outlook.

As a matter of fact, the participation of 120 developers with 1500 properties to showcase during the property exhibition of MCHI-CREDAI prior to Diwali also indicate the developers’ positive outlook that the festive season would boost the property market. Aiming to woo potential buyers by displaying a variety of properties in its four-day property exhibition beginning on November 1 in BKC, they are showing optimism despite of a lull in the market.

An optimistic MCHI-CREDAI President Paras Gundecha says, “With the ongoing festive season, coupled with the revival of interest among home buyers, this exhibition is the ideal destination for a cross section of people. Apart from the wide range of properties, we also have facilities for spot finance with as many as 15 housing finance companies participating. We are sure all visitors will enjoy the experience here.”

Facts speak for themselves. In the Mumbai realty market close to 40 odd projects have been launched by above 20 realty companies, like Lodha Group, Godrej, Sunteck, Omkar, Kanakia, Ajmera among others.

Omkar Realtors has launched one of the biggest premium residential projects Omkar Alta Monte in Mumbai suburb Malad, spanning over 15 acres in the western suburbs with apartments priced Rs 1.9 crore upwards.

“We feel the timing is right with market getting into a fairly receptive mood after a long lull. In our case, our iconic residential project is riding on a great location, pricing and unheard of amenities,” says Bharat Dhuppar, Chief Marketing Officer (CMO), Omkar Realtors & Developers.

…..to be continued