Real estate developers in Mumbai are pulling out all the stops this Gudi Padwa, offering irresistible discounts and lucrative incentives such as gold coins to entice potential homebuyers amid slowdown fears following a banking crisis in the US.
They are looking to maintain the sales momentum in the Mumbai realty market, which has seen a significant revival after the pandemic.
The Hindu New Year of Gudi Padwa, which falls on March 22 this year, is regarded by many as a promising time to purchase a home.
Sandeep Runwal, President of NAREDCO Maharashtra, said people purchase expensive gifts like gold, electronics, etc as a sign of prosperity on this auspicious occasion. "Therefore, it is also an ideal time to invest in real estate – homebuyers are keen to buy their dream home on Gudi Padwa," he said.
By purchasing a home during this occasion, buyers may be able to save 1-2 percent in terms of overall costs if they avail all the discounts and offers provided by the developers, Vimalendra Singh, spokesperson for Mahindra Lifespaces said.
Gold back on the list of freebies
Numerous new project launches, special promotional offers, freebies, discounts, and carefully curated flexible payment schemes are rolled out for prospective homebuyers, Niranjan Hiranandani, MD, Hiranandani Group said.
For example, real estate developer Siddha Group is offering their customers discounts on the pricing along with an assured gold coin on every booking.Mumbai-based real estate company Arkade plans to offer 50 gm of gold to homebuyers at Arkade Aura in Santacruz West for 3-4 BHK segments. The company is also offering 25 gm of gold for 2BHK options at Arkade Prime, located at Marol in Andheri East.
Similarly, the Satellite Group is offering furnished apartments at a discount or 10 gm gold to the homebuyers while Labhi Lifestyle offers 5 gm for booking an apartment on this occasion.
Developers rely heavily on auspicious occasions like Gudi Padwa, which witness an uptick in sales compared to the rest of the year.
This time too developers in Mumbai are anticipating a rise in the number of enquiries and sales. Historically, this trend is backed by a strong consumer conviction that homeownership is a secure investment which leads to wealth generation, Hiranandani added.
In October 2022, the festive month recorded the second-best Diwali sales in the last 10 years other than Diwali of 2020 when a stamp duty cut incentive was offered. The Diwali period in November 2020 saw property registrations of 9,301 units, with the stamp duty incentive playing a vital role in reviving the Mumbai property market, according to Knight Frank India.
Developers expect more sales in premium segments
The Union Budget 2023 capped the deduction on capital gains on investment in residential property at Rs 10 crore. This, according to real estate experts, may have an impact on the sale of uber luxury properties in prime South Delhi and Mumbai and farmhouses and also affect state revenues through property registrations.
"We have seen a spurt in sales of luxury apartments as most buyers are trying to beat the March 31, 2023, deadline due to the Budget's cap on capital gains from property sales," Parikshit Pawar, spokesperson of Shapoorji Pallonji Real Estate added.
Developers are optimistic that festive times will be favourable for prevalent homebuying spree in mid and luxury segments across the key markets.
"Complete and ready homes will remain the top-most priority. Luxury homebuyers are keen on buying properties that offer a holistic living experience. They are looking for residences with great quality that come with bespoke experiences, world-class amenities, green and open spaces, and a sense of safety and security," Prashant Bindal, spokesperson for Lodha Group, said.
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