Real estate developers in Mumbai are offering discounts and deals to attract potential homebuyers on Akshaya Tritiya amid fears of a slowdown due to job cuts and home loan interest rates nearing double digits. Experts say that while demand for affordable housing has tapered somewhat, this has been compensated by traction in the mid and luxury segment.
According to Maharashtra government data, Mumbai has seen 7,400 property registrations this Akshaya Tritiya (as of April 21, 2023). Last year, the number stood at more than 11,000. There is typically a lag in property purchases and registrations, and this year’s Akshaya Tritiya sales are still in play as we speak.
According to developers and experts Moneycontrol spoke to, the demand for housing during this Akshaya Tritiya is similar to last year, despite home loan interest rates increasing from around 6.50 percent to more than 9 percent. However, some sluggishness is seen in the affordable housing segment as buyers in this segment are the most impacted.
"I would say that our understanding and reading of the market in the top eight cities of India, including the Mumbai Metropolitan Region (MMR), indicates that the market is holding up. I would not say that this Akshaya Tritiya there is less traction compared to last year, but neither is it any better. Demand in the mid and luxury segments have compensated for the sluggishness in the affordable segment due to rising home loan interest rates," said Pankaj Kapoor, Managing Director, Liases Foras, a real estate research company.
What’s on offer?
"Most homebuyers wait for auspicious days like Akshaya Tritiya to purchase or invest in their dream home. Accordingly, we have exciting offers for home buyers. In Mumbai, at Joyville Virar, we are giving special Akshaya Tritiya spot offers. In Pune, we are offering gold vouchers upon registering the newly purchased unit. We feel special offers make it easier for homebuyers to invest in their dream homes," said P Rajendran, Chief Sales and Marketing Officer, Shapoorji Pallonji Real Estate.
"As a part of Akshaya Tritiya offers for customers, we at JP Infra, Mumbai, are offering gold coins of up to 25 grams for every booking between 15th to 30th April," said Deepak Nair, Head, Marketing, JP Infra Mumbai Private Limited.
Also read: Mumbai developers shower gold coins, discounts to spur home sales on Gudi Padwa
Developers expect demand
"We expect to see continued interest in real estate investments as a means of asset creation. There is a surge in demand across segments as buyers seek homes that offer world-class amenities, green and open spaces, and a sense of safety and security. The real estate sector has a positive outlook in the long term, with top developers who can cater to evolving demands and deliver high-quality homes having an edge in the market," said Prashant Bindal, Chief Sales Officer, Lodha group (also known as Macrotech Developers).
Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd, a Gurugram-based firm, said that Akshaya Tritiya is likely to further boost demand for real estate.
“This could be due to a number of factors, such as increased consumer confidence and willingness to invest, festive discounts, and offers provided by real estate developers, and the belief that buying property on this day will bring good luck and prosperity,’’ said Aggarwal.
What do the numbers show?
Mumbai city and suburbs reported an 11.53 percent year-on-year (YoY) drop in property registrations in the last quarter of FY22-23 compared to FY21-22. However, registrations increased 28 percent month-on-month (MoM) to 12,421 in March from 9,684 in February 2023.
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