Mumbai, Maharashtra, India
The Reserve Bank of India, in its bi-monthly review, has given home seekers the advantage of reduced EMIs on their home loans. This should dove-tail with the festive sentiment on Gudi Padwa, and the combined effect could result in upward movement in the real estate markets, said Niranjan Hiranandani, MD, Hiranandani Communities.
Across Mumbai and Maharashtra, real estate is a sentiment-driven market; and as the festivals of Cheti Chand, Ugadi, and Gudi Padwa happen, real estate in Mumbai and the Mumbai Metropolitan Region (MMR) seems all set to start upward movement, be in the parameter of sales or price points, pushed upwards by increasing demand. “The triple – fest of Cheti Chand, Ugadi and Gudi Padwa should see upward movement in realty markets,” said Niranjan Hiranandani.
Real estate, as an industry, witnesses business cycles, and market indications are that it is poised to witness the beginning of an upturn. “Gudi Padwa is a festival that is associated with the purchase of real estate, and the sweetener inform on reduced EMIs on home loans will go a long way in enhancing the positive sentiment”, he added.
The real estate industry has witnessed a wave of positive sentiments in the last year, which became even sharper during the festive season especially, Dassera and Diwali in 2015. A major reason for growth of positive sentiments in 2016 is the Real Estate Regulation Bill being passed by Parliament and becoming law; and as a result, I foresee increased credibility and positivity on the festive day of Gudi Padwa,” said Niranjan HIranandani.
“The passing of the RER Act by the Indian Parliament will result in enhancing confidence in the minds of home seekers. In fact, as a result of transparency that the regulatory law will result in, across segments of real estate, I foresee real estate leasing and buying activity increasing in 2016. To my mind, Holi is the best festival that reflects the scenario facing the industry – burn away the old negatives, celebrate the new positives,” added Niranjan HIranandani.
Beyond festivals and festivities, real estate growth in Mumbai and the MMR will be fuelled by infrastructure development; and real estate in this region should make significant gains as a result of the major infrastructure projects for which clearances or granting of pending permissions have been announced.
“On the festive occasion of Cheti Chand, Ugadi and Gudi Padwa, let us also celebrate the return of positivity to real estate in the form of upward movement in realty markets,” he concluded.
Niranjan Hiranandani is Founder & MD, Hiranandani Group. His recent initiative is Hiranandani Communities. He is the Founder and First President (West), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India.