Home purchase transactions are known to rise during auspicious occasions. Regardless of whether the transaction is for self-use or as an investment, this ‘concrete asset’ is clearly preferred over alternative avenues like gold and that too with good reason. With the buyer profile expanding in terms of age and gender, the decision drivers for the younger generation and women are also well defined.
For instance, Gudi Padwa 2023 witnessed better than expected home buying transactions at locations in Thane. Data from real estate developers in Thane, as collated by CREDAI-MCHI Thane, shows that 1,723 homes were either booked, bought or saw the buyer moved into the new residence on the auspicious day of Gudi Padwa this year.
Asset class
Jitendra Mehta, President, CREDAI-MCHI Thane, pointed out that property is a solid asset class on various parameters. For the home buyer, the safety factor of having bought one’s own home is beyond comparison. For the investor, it reflects a safe and secure option that provides both: rental income and capital appreciation. Obviously, it is a win-win for both the buyer and the investor.
The enhanced home buying sentiment was reflected in the quantum of sales and also new launches on the auspicious day. Real estate developers announced schemes that included ready-to-move-in apartments, booking offers, flexible payment schemes, etc. The developers also offered sweeteners to market their properties and get maximum leads, which get converted into actual home buying in the coming weeks, he emphasised.
Festive fervour
Sandeep Runwal, President, NAREDCO Maharashtra, affirmed that Gudi Padwa is a special occasion for many. People buy high-value materials like gold, electronics, etc as a sign of prosperity and a good omen as it’s considered very auspicious. Therefore, it is also an ideal time to invest in real estate - home buyers are keen to buy their dream home on Gudi padwa. Additionally, developers also come up with lucrative offers and discounts, making it the perfect day to buy your dream home.
The Guardians, a real estate advisory firm, shared about generating its highest-ever sales revenue of over Rs 356 crore on the auspicious occasion of the New Year, celebrated under various names across the country, such as Gudi Padwa, Ugadi, Sajibu Cheiraoba, Navreh, and Cheti Chand.
Realty trends
These developments are a logical progression, in sync with the trends outlined in NoBroker’s annual Real Estate Report, which states that the consumer demand in 2022 demonstrated robustness despite changes in market conditions. While initially driven by factors such as historically low home loan interest rates and developer discounts, it remained strong even when home loan interest rates and house prices increased in the latter part of the year. In fact, the demand for ready-to-move-in properties far outstripped the supply, driving major buyer interest toward new project launches.
In the survey, 71% of respondents indicated that they would prefer to invest in real estate over other investment instruments such as gold, SIP/stocks, or Bitcoin. In fact, 89% of landlords mentioned that they were looking to invest in another property. 73% also felt that they find it much easier to rent out their property now. 56% of them have even admitted that they increased their rent post-COVID.
Over one-third (36%) of homebuyers on NoBroker.com were millennials between the ages of 25 and 40 years, indicating a mindset shift in a generation earlier characterised by preferring utility/rental over ownership. Real estate also emerged as a lucrative investment opportunity. While 82% of respondents wanted to buy a property for end-use, 18% indicated that they wanted to buy property as an investment. This trend was driven by several factors, including robust long-term capital appreciation and improved rental yields.
With residents across the MMR giving a big thumbs up to real estate this Gudi Padwa, the stage is set for transactions and activity levels to accelerate further during the summer, which is the peak season for taking possession and shifting to a new residence.
