Dark Diwali For Real Estate Sector As Festive Season Fails To Attract Home Buyers
Advertisement
Advertisement
Marred by high cost of input and gloomy consumer sentiment in the Diwali is regarded as the most crucial time for the industry with sales increasing by 20-25% as compared to normal days. But this year, it has not brought much cheer to the real estate industry.
According to Anuj Puri, chairman and India head of Jones Lang LaSalle, a global real estate services firm, the Narendra Modi-led government’s pro-business policies will need more time to yield the desired results.
“While demand exists, it is still held in abeyance by various economic factors, including the natural lag between the announcement and implementation of the government policy catalysts,” he said. “It will take several more months for the market to get into convincing forward momentum again. The festive season did not bring the kind of momentum that was hoped for,” he added.
To counter the slump in sales, developers have been offering some discounts and incentives. But even these steps have failed to attract buyers. "While there was an improvement in new launches, sales continued to remain low despite developers offering attractive pricing schemes and discounts to attract buyers," stated a study done by Jones Lang LaSalle.
Advertisement
“During the festive season, developers generally launch new projects as well as offer various incentives to attract buyers. However, over the last few quarters, there has been a slowdown in new launches as the inventory levels itself are very high,” Samruddhi Realty Chief Executive Madhusudan K said.
Advertisement
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- From terrace to table: 8 Edible plants you can grow in your home
- India fourth largest military spender globally in 2023: SIPRI report
- New study forecasts high chance of record-breaking heat and humidity in India in the coming months
- Gold plunges ₹1,450 to ₹72,200, silver prices dive by ₹2,300
- Strong domestic demand supporting India's growth: Morgan Stanley