Real estate market usually thrives during the festive season. The previous years had allowed the real estate market to do so. Odds stood against real estate market this year.
Real estate market received in fact no boost from the festive season. Or the festive season failed to boost the struggling and sluggish real estate market. Festival season is normally considered as some of the best times to own a home. Yet this year there was no real boost from the festival season.
The sales of residential units remain static and unimpressive despite the festival season. In fact it seems failed to reanimate the sluggish Real estate market with increased number of property sales.
Whatever is the reason – some blame higher prices, some point the increased interest rate- the fact is true that the sale of residential properties has improved hardly. This is actually a contradictory result against what the real estate builders had expected.
Contrary to the expected boom in the real estate market, the festival season remained incapable of raising any demand for residential properties. As per the real estate experts opinion the home buyers are chased away by the higher rates. In fact it has created a situation of non-affordability.
Latest reports prove that the residential sale fell down by 8.5 % in the month of October from the previous month. The number fell from 4500 to 4115 in the month despite the auspicious festivals like Diwali, Navratri and Eid.
The fall of figures in August was viewed as that the onset of festival season. Festive offers and freebies remained incapable of attracting the attention of homebuyers.
Housing Industry Chambers’ Maharashtra (MCHI) Chief Mr. Paras Gundecha said that there was no new interest in the homebuyers in the festival season. This has affected the real estate market adversely. He added that normally the auspicious festival seasons are golden times for every market especially real estate market.
However this year the festival season has nothing to boast of as it failed to push real estate market up. Increased land costs, raised interest rates, etc. has made it unaffordable to the people. This is the main reason which drove the homebuyers away. Change of marriage season is another such issue.
Marriage season drives the investors away because most of them prefer to have investment in their free time. Marriage season engages them with no time for leisure. Thus they withhold from the real estate investment.
However it seems that the property prices seem to be stable as there is an increased amount of supply. There is a slight fall in the yearly sale as well. The home buyers can expect some freebies and discounts from the real estate builders, say the real estate market analysts.