By Accommodation Times News Services
The auspicious festival of Diwali is here and developers are expecting a boom in the real estate market which is stagnant since months, but this festival season also does not seems to bring spark in the market. Though, developers are predicting for good sells in the festival and are offering various discounts, gifts, incentives and freebies to attract buyers on their new projects launched, but experts have to say that they cannot see the sector improving so soon.
Sunil Mantri Chairman, Mantri Realty, said, “The Industry is looking forward to an increase in demand this festive season. The market sentiments are high and we are hopeful that real estate market gets a further boost. We at Mantri Realty Ltd. are anticipating a good number of enquiries during this auspicious period. We are offering customers a ‘limited edition’, customised motorcycle worth Rs. 6 lacs free on purchase of an apartment at Mantri Serene.”
Whereas, Pune based realty firm Pride Group’s Managing Director said, Transactions have certainly increased in this festive season, but it must be said that the demand is more subdued than was initially anticipated. In quantifiable terms, it could be said that there has been only about 18-20% rise in overall demand as opposed to the expected 25-30%.
As last two Diwali season were deem for real estate developers, this year industry players are packaging deals to include financial schemes for newly launched projects, but this has also failed to lighten the real estate sector. The season has witnessed 30 per cent increase in the launch of new residential projects, despite the fact that demand is there, as enquiries are generated, but people are not opting for purchase due to lack of affordability and high interest rates on home loans, developers have piled up huge inventories.
As per estimation by Knight Frank, till June developers in top-six cities of the country had an inventory of 0.63 million homes and the low sells this Diwali will add on to this figure.
There are expectations that demand may pick up, but a high unsold inventory suggests that the prices will remain under pressure especially in the projects in the small and medium segment that have been priced high.