Gudi Padwa may prove beneficial

This year,the Gudi Padwa festive season will be juxtaposed with some interesting market dynamics. The residential market in many cities has been slowing down due to overpricing. Going by property registration as well as home loan disbursal data,the number of flats sold in the first quarter of 2011 is significantly lower than the corresponding period in 2010.

Gudi Padwa may prove to be a turning point for many developers who have been reluctant to realign their pricing. They are likely to address the festival season as an opportunity to enhance sales and offer lower prices under the guise of festival discounts There is no doubt that the tradition-fuelled upswing in buyer sentiments needs to be capitalised on.

This year’s Gudi Padwa period is liable to see an upscale in freebie schemes. It is realistic to expect discounts from 10-20 per cent on asking prices of six months ago,though buyers are advised to refer to actual price movements for a project. Not surprisingly,a slew of new projects will be launched around Gudi Padwa. However,the number of launches is lower when compared to last year. There is a noticeable trend towards smaller-sized units,obviously meant to catch the tail-end of demand.

While there will be a smaller bouquet of options to choose from,this is the best period for buyers to get lower rates in the last year.