You are here: Home » PTI Stories » National » News
Business Standard

'Housing sales to remain slow during Gudi Padwa festival'

Press Trust of India  |  New Delhi 

Housing sales are likely to remain subdued during the upcoming festival as prospective home buyers and investors are still cautious, property said.

The sales during the first quarter of 2017 stood at 45,000 units, half of 90,000 units in Q1 of 2015, indicating shift in consumers behaviour, it added.

said that the festival season is considered as an auspicious time to invest in

Considered a time of renewal, it coincides with Punjab's Baisakhi, Tamil Nadu's Puthandu, Andhra Pradesh's Yugadi and Kerala's Vishu, it added.

The developers offer lower prices under the guise of festival discounts to boost their sales.

"Since a large cross-section of Indians tends to link property acquisition with auspicious dates, activity levels on the property market tended to increase visibly in this period. However, 2018 is not likely to bring the accustomed uptick," said.

Stating that sales were slow during this festival even in the last 2-3 years, Puri said the sector is facing more complex set of challenges than ever before.

"The market in many cities has been slowing down, and developers are hoping that will prove to be a turning point for many developers who have been struggling with slow sales as well as policy-induced compliance pressures and generally negative market sentiment," Puri said.

Structural changes and policy changes such as demonetisation, RERA and GST have helped bring sanity in the Indian sector. Investors, who were instrumental in driving up prices in previous years, are no longer a major factor either.

However, the said that 2018 arrives in the backdrop of a still-tepid housing absorption in major cities.

"This can be attributed to the fact that Indian sector is still in the throes of a major course correction a journey that has put buyers into an extremely cautious mode which is unlikely to relent on mere tradition-based grounds," Puri said.

On a positive note, said the restricted new launches and developers' increasing focus on project completions would reduce unsold inventory and demand will soon begin to rise.

However, this will not happen in time for to save the day, it added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 15:25 IST
RECOMMENDED FOR YOU