Housing Sales to Remain Subdued during Gudi Padwa festival

Housing sales are going to stay slow during the up and coming Gudi Padwa festival as potential investors and home buyers are still worried, according to ANAROCK, a property consultant.

During the first 2017 quarter, only 45000 units were sold, while 90000 units were sold in first quarter of 2015, showing shift in customers’ behavior, according to the company.According to ANAROCK, the festive season of Gudi Padwa is known to be auspicious for property investment. With the time of renewal, it comes with Puthandu in Tamil Nadu, Baisakhi in Punjab, Yugadi in Andhra Pradesh, and Vishu in Kerala. The real estate developers provide lower prices as part of festive discounts in order to boost sales. Anuj Puri, ANAROCK Chairman, added, “Since a huge number of Indian buyers might link the acquisition of property with auspicious events, the property market may see hike in activity levels to improve visibility during this period. But Gudi Padwa
may not bring the uptick.”

Puri added the sector might face more challenges and states were slow even during the past two to three years during this festival. Puri said, “The market of residential properties has been slowing down in many cities, and developers hope that the festival will be a turning point for them as they have been facing policy-induced pressures of compliance, slow rates, and adverse market sentiment.”

Policy changes and structural changes, including RERA, demonetization, and GST have been responsible to bring sanity tot the real estate sector in India. Investors, whowere active in driving up prices over the past years, are no longer a huge driving factor either. But according to consultant, Gudi Padwa arrives in the backdrop of housing absorption which is still tepid in big cities.

Puri added, “It can be due to the fact that real estate market is still in throes of significant correction, which has led buyers to be very cautious which is not going to relent on just tradition grounds.” According to ANAROCK, increased focus on project and restricted new project launches would cut down the unsold inventory and we will soon see a huge demand. But it is not possible during Gudi Padwa season.”