Table of Contents
Ganesh Chaturthi marks the beginning of a long festival season, up to Diwali. This period is considered as an auspicious time to buy a home. Consequently, developers as well as home buyers, look forward to Ganesh Chaturthi, to make the most of the festive spirit. As per industry estimates, nearly one-third of the inventory with various developers, is sold during this period.
Considering the subdued market conditions this year, everyone is wondering whether the festive season, beginning with Ganesh Chaturthi, can revive sentiments and lead to higher real estate sales. Economic fundamentals, however, do not seem to support a turnaround in the housing market. There is a mismatch between the sentiment of home buyers and their financial standing. With job growth remaining negative over the last two years, any substantial change looks unlikely.
Developers remain upbeat
However, this has not deterred developers, who are strategising their marketing campaigns to boost sales. They believe that the festive season will encourage fence-sitters, to buy their dream homes, and this volume itself is likely to be significant.
Hiral Sheth, marketing director with Sheth Creators, feels that a slow growth rate directly affects the economy and employment generating opportunities, thereby, reducing income generation. Nevertheless, the Indian real estate market eagerly looks forward to the onset of the festive season. With various schemes and benefits on offer, developers invite the buyers to invest in property, during this period, she maintains.
“Developers eagerly wait for festivals like Ganesh Chaturthi and Navratri, to increase their property sales, even though the economic slowdown has definitely hit the realty market and put property purchases on a back foot. Investing in a property is a crucial decision for every buyer, as it involves his entire lifetime’s savings. Every buyer looks at investing at the right time and when the property rates have gone down considerably,” explains Sheth.
Opportunity exists, if the overall packaging is right
Ashok Mohanani, CMD of Ekta World, feels that the festive season is bound to have a positive impact on the realty sector, as it touches the emotional quotient of home buyers. The residential real estate market will witness bullish demand, as Ganesh Chaturthi is an ideal time to invest in properties, he adds.
“The festive season is considered as a prosperous time to buy a property. Moreover, buyers have an array of offers and multiple financial schemes, from developers, banks and financial institutions. The global slowdown will have a negative as well as a positive impact on the Indian real estate market. However, there will be tremendous opportunities, for home buyers who dream to possess a house,” Mohanani elaborates.
Optimists insist that the latest government policies and bills, have lifted the real estate market in India. Developers, no doubt, will have various marketing strategies and lucrative offers, to attract the home buyers. Consequently, the festive sentiment, along with the right marketing package, has the potential to attract fence-sitters. However, the economic fundamentals tell a very different tale – the job market is down, the overall investment climate is not conducive and confidence in the real estate market remains low. Moreover, the uptake of office space in the last three to four quarters, has also not translated into housing sales. Hence, it will be interesting to see how the market performs this Ganesh Chaturthi.
Market realities, during this Ganesh Chaturthi
- Sentiment of home buyers towards property purchase, is generally high during the festive season, beginning with Ganesh Chaturthi.
- However, economic fundamentals are not very conducive.
- Fence-sitting home buyers are likely to be the major drivers of demand.
- A lot will depend on the marketing package of respective developers.
(The writer is CEO, Track2Realty)