ICCPL PROPERTY NEWS

THIS FESTIVE SEASON REALTY SECTOR PICKS UP PACE

     With the first innings of the festive season concluding with Navratras and Dussehra, sector is keeping its fingers crossed for the remaining month of October. The second phase of the festive season conclude with Diwali, or the first week of November this year. The much awaited time of the year when sales and deliveries take place, realty sector sees the best days during each festive season. But this time, the numbers could not impress the sector as much as last few years, riding with unstable sentiments and much hyped cash crunch in the sector. The developers were seen proactive on the sales front as deals offered in the market ranged from heavy discounts, freebies and other lucrative offers. Even on the deliveries part, developers were actively engaged towards offering possession. Overall though, the market was observed to be picking up some pace, promising a better growth and revival in the upcoming few months.

“With the festive season in progress, the realty sector always hopes for a momentum which should last long. This year as well, the market has performed well with sales and deliveries taking place at a good pace. The much needed revival is becoming prominent in the sector with sentiments gradually becoming positive. With still a couple of weeks left for the festive season to conclude, market is gearing up for an even better response by Diwali”, explains Kushagr Ansal, Director, Ansal Housing.

A Look At The Sales Figures

“Its a normal tendency of the realty sector to perform better than non-festive days. There is an increment of about 20-25 percent on the sales front during the festive season as against the non-festive days. Even on the deliveries part, buyers tend to relocate to their properties during festive season more often. Thus, possessions taken up rise about 10 percent as against the non-festive days. It is clear that the market observes better results on all fronts during the festive season”, avers Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group. With not many buyers and takers this year, the market was bound to take a hit as sales were witnessed to be lower than other years. But during the course of all the instabilities, developers with a history of quality construction and on-time deliveries are having a merry time. For instance, NCR’s realty majors Gaursons India Ltd. and Ajnara India Ltd. crossed a century mark on the sales front during the course of Navratras. Manoj Gaur, President CREDAI-NCR & MD, Gaursons India Ltd. shares, “During the nine days of Navratas, we made 131 bookings across four of our projects; Gaur City, Gaur Atulyam, Gaur Saundaryam and Gaur Sportswood. These figures are a lot more in comparison to a sample of nine non-festive days, where we usually gather 45-50 bookings. Even against the last year’s Navratras, we saw a 25 percent growth in sales numbers this year.”

Adding further, Ashok Gupta, CMD of Ajnara India Ltd. said, “With the ongoing festive season, market is responding positively for the developers. Across our all ongoing projects, we made 105 bookings during the Navratras and are projecting this number to get doubled by this festive season end with Diwali. On usual days that are non-festive in nature, we gather about 50-55 bookings. This highlights the importance of festive season in the realty sector, where developers across the country manage double sale numbers than normal.” With a lot of options to choose from, buyers in the current festive season have allowed developers across NCR to flourish and clear up remaining inventories as well. Ready to move in projects were seen to have gathered the biggest chunk with developers offering ready units with great deals, thus generating huge sales. Antriksh India managed a decent 65 bookings during the Navratras that used to be hardly 15-20 during a normal non-festive period. On the other hand, Saya Group managed 46 bookings from two of its projects. “It is extremely important to make full use of the festive season, and offering a good deal allows a company to multiply its sales. With sentiments positive, festive season is the best time for the developers to bag the sales opportunities”, elucidates Rakesh Yadav, Chairman, Antriksh India. Explaining further, Vikas Bhasin, MD of Saya Group states, “It is important for the developers to understand the trend and psychology of the buyers during the festive season. For buyers, there are a lot of options to choose from, but nothing can beat a deal where quality is offered with timely delivery. But in order to win the competition, developers lure the buyers with discounts and freebies and thus, sales increase manifolds.” Launch of new projects is another sight which is observed during the festive season. The charm of buying a property in a newly launched project along with a lucrative deal is the best that a buyer can get. Airwil Infra Ltd. bagged around 55 bookings this Navratras with the most bookings happening in its latest offering Conac, located in Noida Sector 113.

Possessions Catch Up Pace

Not only does sales multiply during the festive season, possession numbers also climb parallel. Considering this auspicious time of the calendar, people either buy new properties or relocate to their new homes. This pushes the developers to stick to the deadlines and offer possessions, especially during the Navratras. Gaursons India Ltd. managed to offer possession of around 200 units during the nine days of Navratras. “Getting possession of the unit is a dream of every buyer who invests a lifetime’s earning while purchasing the property. Thus, developers not only focus upon the sales, but work diligently towards the completion of the project in order to offer possession during the festive season”, adds Manoj Gaur of Gaursons India Ltd.

Ajnara India Ltd. offered possession of about 80 units in the span of nine days during Navratras. “We have been on a delivery spree for the last several months and had fast paced our work to allow the buyers to get possession during the festive season”, said Ashok Gupta of Ajnara India Ltd. “With the festive season reaching halfway, developers are eyeing the remainder month to gather more sales and offer possessions. This in turn, in the long run, will help the sentiments to get better and allow the investment to flow more in the economy”, concludes Vikash Bhagat, Director, Airwil Infra Ltd.

ICCPL PROPERTY NEWS

REALTY CHEERS RATE CUT IN THE ONGOING FESTIVE SEASON

Considering the political and international turmoil happening all around, the RBI was likely to keep the key rates unchanged but amid varied speculations, the apex bank has finally laid rest to the expectations by cutting the repo rate by 25 basis points in it’s latest policy review. The new repo rate now stands at 6.25 percent from the previous 6.50 percent. Reverse repo rate is now at 5.75 percent; Cash Reserve Ratio (CRR) at 4 percent and Statutory Liquidity Ratio (SLR) at 21.5 percent respectively, remains unchanged. This rate cut coming during the festive season is sure to boost sentiments both among lenders and borrowers because this benefit if passed well to the buyers is sure to provide cushion to all. This also happens to be the first monetary review policy by the newly appointed RBI Governor, Urjit Patel, and this rate cut will allow the realty sector in the country to blossom during the festive season.

Industry Reacts:

Manoj Gaur, President CREDAI-NCR & MD, Gaursons India Ltd.

With the ongoing festive season, realty sector of our country could not expect for a better news than a repo rate cut. At this point of time when the sentiments are positive and people are eager to buy and invest in property, banks will now cut interest rates, that will allow buyers to get their EMIs reduced. The demand will witness a better rise in the current festive season which will allow the inventory to clear in major metro cities. Realty sector welcomes this move by RBI and this being Urjit Patel’s very first policy review.

Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group

This move was pretty much on the cards looking at the economic recovery witnessed over the last couple of quarters. For long there has been no reduction offered by the other banks but with the festive mood already set in and people looking for better and better options, banks can cash in well and allow further support to the real estate sector.

Vaibhav Jain, CMD, Rise Group

RBI has been extremely pro-active in terms of bringing relief to the economy and pushing the banks forward to provide final benefit directly to borrowers through reduced EMIs. Real estate sector in particular was in dire need of a repo rate reduction as we are standing in the final festive season of the year. Sentiments will now become better as customers will be expecting banks to lower their rates that will be profitable for them prior to a big purchase such as, property.

Dhiraj Jain, Director, Mahagun Group

There exists a direct relation between reduction in lending rates by banks and an increase in demand for property. It is then just a matter of proper timing by the banks while adjusting the rates. The festive season of the Hindu calendar has just commenced where massive demand is observed every year, and this is the time when potential customers plan and allocate their funds for the big purchase.

Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz

A fall in lending rates today will promote the sentiments in the market and allow people to strategise their upcoming purchase as the maximum purchase decisions involving big amounts are made during this period. RBI has played its part well today and now the ball is in banks court. This will not only enhance the purchasing power of the customers but also allow them to even go ahead with a better purchase.

Kushagr Ansal, Director, Ansal Housing

This rate cut has come at the most opportune moment which could have happened on the doors of Indian real estate. There had been many positives building up to this festive season like the RERA already passed, GST to be implemented by the onset of the next financial year, considerable reduction in FDI limitations, the only stone left unturned was a rate cut by the apex bank. Now, with the cut also done by the apex bank, there could have been no better sentiment enhancer for the already upbeat mood in the real estate sector.