The real estate industry may be showing signs of revival, but contrary to expectations, the festive season is not providing the much-needed boost, say real estate analysts. Buyer angst over escalating realty prices is threatening to create a lull in sales again, and with developers offering little or no discounts, the post-Diwali scenario is anything but certain. While some developers are confident the market will stabilise, others feel a lot will depend on the infrastructural policies of the new state government. The festive season, which starts with Navratri, is considered an auspicious time to purchase a house. This time, however, things are different. Baits like gold coins, holiday packages and waiver of stamp duty have disappeared from the developers’ radars. With home loans starting at 8%, developers are justifying their absence on grounds that the buyers are coming back as the market is picking up. Brokers concur saying that sales have dropped in the past few weeks as resellers and developers have hiked rates by up to Rs2,000 per sq ft in the last few months. Builders are however justifying the hike saying that if just two or three flats are left to sell, a hike of 5-10% is justified.
September 22, 2008