Akshaya Tritiya: Impact on Indian Realty Market With Akshaya Tritiya just over a week away, the real estate industry across all major cities in India is gearing up to maximise the number of residential units that can be sold on this auspicious occasion. Many developers are looking to cash in on the sentiment associated with the occasion so as to sell their projects. Considering that the real estate sector across the country is going through a low phase, it is expected that the lower prices on offer as well as the freebies and discounts offered by many developers during Akshaya Tritiya will spur the real estate market across major cities to a certain extend. Importance of Akshaya Tritiya: Akshaya Tritiya is considered an auspicious occasion according to the Hindu calendar. It falls on the third Tithi (Lunar day) of the Bright Half (Shukla Paksha) of the Hindu month of Vaishakha. During this phase, the Sun and Moon are in exaltation due to which they are simultaneously at the peak of their brightness. This phenomenon happens only once in a year, and in 2014, Akshaya Tritiya is set to fall on May 2nd. Significance on Realty market: Generally, Akshaya Tritiya is considered by Hindus as an auspicious time to buy gold. There are many who consider it an appropriate time to buy new vehicles as well. However, with the changing times, there are many who feel that is is an ideal time to invest in real estate as well. This sentiment among a cross-section of buyers has been well exploited by realty developers who look forward to the period leading to Akshaya Tritiya to sell a considerable number of their residential units. To meet this end, developers offer various freebies as well as discount so as to attract buyers to invest in their projects. Most of the buyers who evince interest in buying residential property during this period are first-time buyers. Impact on Realty market across major cities: Since Akshaya Tritiya is considered an auspicious day across the country, its relevance in terms of impact on realty spans across major cities in the country. Moreover, many developers are going all out to cash in on this favourable period. Due to the current sluggish trend prevailing in the real estate market, prices at present across all major cities in India are at an all time low. This coupled with the fact that the General Elections are in
progress across the country, the realty market will take a few months more to revive. Hence, Akshaya Tritiya presents developers with a lucrative opportunity to sell slow-moving inventory or inventory that has been sold for long. Even for new projects which are already completed or are nearing completion, Akshaya Tritiya presents an ideal phase to get a much needed boost in terms of increase in sales volumes. This thrust can then be carried forward into the future so that developers get their money’s worth when the market revives later. Some of the markets which can expect considerable upsurge in sale of residential units are Mumbai, Delhi, Bangalore, Chennai, Rajastan, Gujarat, West Bengal and Orissa, among others. Developers schemes: Akshaya Tritiya is a period when developers lure prospective buyers with various schemes and offers, which include freebies and discounts. These schemes may vary from one developer to another, with each developer offering something unique, which can either be ranges of discounts on the sale price based on the cost of the residential unit to freebies such as electronic goods like TV, fridge, washing machine, among others, household products like furniture, cooking range, home decor articles, among others as well as other attractive products like laptops, mobile phones, two-wheelers, among others. However, buyers will have to tread with caution while selecting the ideal deal to opt for. Even though the discounts and freebies offered may seem attractive to the buyer, there should be some basic criteria that the buyer should impinge his buying decision. They include the location, the amenities offered, the infrastructure facilities in the area, the connectivity, and most importantly the reputation and credibility of the developer. Current Scenario: The period leading to Akshaya Tritiya is considered to be a phase when buyers can expect to the sales of their projects to pick up considerably. However, given the current scenario prevailing in the residential realty market across the country, it does not give much scope for developers to expect too much in terms of an upsurge in residential sales volumes of their projects. The slump in the residential realty market across most major cities is still prevailing and buyer sentiment are still quite low. This coupled with the ongoing General Elections, which has caused buyers to adopt a wait-andwatch approach. This does not instill much confidence among developers with regards to the various schemes that they offer during this festive period. However, as per the proverbial saying, ‘the early bird catches the worm’, developers who had announced their promotional schemes associated with Akshaya Tritiya much in advance can expect a slight increase in their sales around this period. But whether this growth can be sustained in the longer run is anybody’s guess.
Source: CommonFloor.com
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