Navi Mumbai: Builders bullish on Diwali business

Admitting that the real estate market in Navi Mumbai was a bit slack for the past couple of months, the developers are pinning their hopes on the festival of lights for revival of the market. They believe that this is an apt time for finalising the deals, as many developers are offering some perks in an effort to attract the consumers which was not the case earlier.

“The sales have started picking up after the MCHI-CREDAI property exhibition and we are expecting that more and more public will come forward and finalise the deals, since Diwali is one of the most auspicious festivals and people are positive towards purchasing properties. Also, the developers have started negotiating with people as far as rates are concerned which is a positive sign for revival of the property market in the city,” noted developer and president of MCHI-CREDAI (Raigad unit), Rajesh Prajapati, said.

He added that earlier many developers were not ready to negotiate the rates and were selling at a fixed price, but now they seem to have become lenient towards customers since they have realised that this is the time when most property buyers will think of finalising the deals.

Echoing similar feelings, president of Builders Association of Navi Mumbai (BANM), Devang Trivedi said that the market is witnessing a revival as it was facing a slowdown in terms of sales in the past couple of months. “The inquiries are increasing and people are coming forward to seal the deals as they have some extra money in hand after getting Diwali bonuses. Also, the property exhibitions have played an important role in revival of the market since people have identified the areas where they wish to invest their money and inching towards finalising the same during Diwali. All in all, the market situation has improved and we hope to do good business during the festival,” Trivedi added.

However, real estate observers have a different story to tell. Though they agree that the market is witnessing improvement to a certain extent, but also feel that not much sales are expected during the festival. “The increase in repo rate, as announced by the RBI, which will have a direct impact on the rate of interest charged on housing loans, will play a major role as people will now think twice before finalising the deal because the interest rates will surely increase. It will have a negative impact on the market and the developers will have to dole out some extra discounts to lure investors,” real estate observer Srikrishna Goswami said.

“Also, many companies are not paying any Diwali bonus to their employees. Though this will not have a direct impact on the real estate scenario, but a motivation for employees is absent. This creates uncertainties in the minds of people as they are also not getting regular increments and promotions forcing them to raise questions over their usefulness at their jobs. Also, there aren’t many job opportunities and the salaries have become stagnant as a result of which many of them are reluctant from taking a risk by investing in the real estate market,” Goswami added.

Hope sustains them
Admitting that the real estate market in Navi Mumbai was a bit slack for the past couple of months, the developers are pinning their hopes on the festival of lights for revival of the market.

Diwali is one of the most auspicious festivals and people are positive towards purchasing properties. Also, the developers have started negotiating with people as far as rates are concerned which is a positive sign for revival of the property market in the city

Echoing similar feelings, president of Builders Association of Navi Mumbai, Devang Trivedi said that the market is witnessing a revival as it was facing a slowdown in terms of sales in the past couple of months.