Gudi Padwa marks the beginning of the New Year, as it is the first day of the Chaitra month according to the Hindu calendar. It signifies hope, new beginnings and prosperity. Gudi Padwa, hence, is considered as an auspicious time, to buy or book a home. Owing to the emotional connect that home buyers have with the purchase of property, the Indian property market is likely to witness an upsurge in real estate sales, transactions and property inquiries, during festivals.
In the Indian property market, home buyers and investors don’t just consider the property’s total cost, value and returns but also give importance to the time of the purchase, the occasion, how auspicious it is and much more, points out Aditya Kedia, managing director of Transcon Developers. “Home buying in India is not just limited to the process of making investments but is also associated with a whole lot of rituals,” he says.
Gudi Padwa 2019: Impact of the GST rate cut and policy changes on realty
The residential real estate market in India has exhibited slow growth, following the various policy changes that were introduced by the government. Nevertheless, structural modifications and policy changes, such as demonetisation, the Real Estate (Regulation and Development) Act (RERA), real estate investment trusts (REITs) and the Goods and Services Tax (GST), augur well for the long-term stability of the Indian real estate sector. “Currently, the sector is on a revival mode, thanks to the attractive home loan interest rates which are now quite low, the vast residential options available to home buyers to choose from and the government’s interest subsidy to meet its objective of ‘Housing for All by 2022’. The affordable housing segment is witnessing growth in sales. With the infrastructure status granted to this segment, various developers have come up with budget homes and second homes catering to the mid-income buyers. The Pradhan Mantri Awas Yojana has also given a huge advantage to first-time home buyers. Moreover, this year’s Gudi Padwa comes just after the announcement of the union budget and a reduction in the GST rates for under-construction properties. Gudi Padwa 2019, hence, is likely to bring the required uptick for realty sales and prove to be a turning point for the entire sector,” adds Kedia.
Girish Shah, executive director – residential sales, Knight Frank India, expresses hope that demand will start to grow after April 1, 2019, when the new GST rates come into effect. “The reduction in GST can potentially reduce the buyer’s pay-out by 6-7% on the overall purchase, depending on the category. The consequent accelerating sales will bring down unsold inventory, which has long been afflicting the real estate sector,” Shah elaborates.
Gudi Padwa discounts and freebies: What can home buyers expect during auspicious dates?
According to Hiral Sheth, head of marketing, Sheth Creators, developers are looking forward to an upsurge in sales, with a significant decline in the unsold inventory levels in the coming days. During Gudi Padwa, a number of developers offer attractive pricing on properties, discounts and gifts, to encourage sales.
“Additional offers like customised and easy payment schemes, free gold coins, family holiday packages, free furniture, fully-furnished kitchens, offers to bear the GST or stamp duty charges, low interest rates on loans and cash-backs, are often clubbed with conventional discounts. All this can help the prospective buyers to save a huge amount, on the total value of the property. On the back of all the sops and the revival in residential demand, we expect a considerable improvement in property sales this Gudi Padwa. It is the right time for end-users, who were sitting on the fence, to invest in the market,” concludes Sheth.