A double whammy for City realtors this Aashaada

'Inauspicious' period spreads over 2 months when buyers only explore market

A double whammy for City realtors this Aashaada

Sales and purchases of apartments and sites would see a slump by 50 to 60 per cent in the Aashaada period extending up to August 20 this year. 

The fall in sales is higher than last year as Aashaada during this year is an extended one, spread over two months instead of the normal one month. Builders are, however, prepared for the extended slump.

As per some real estate estimates, the city has over 700 residential projects comprising apartments, villas, row houses and plots amounting to 1.82 lakh units under development. Of these, an inventory of roughly 60,000 units remain unsold. Apartments account for 80 per cent, the rest are plots.

Suresh Hari, builder and secretary of the Confederation of Real Estate Developers Association of India (Credai), says that the “slump in sales during aashaada could be 50 to 60 per cent. It may be a little higher this time considering that Aashaada is spread over two months. But builders are prepared for this and would conduct certain activities to keep the sentiment up and stable. Builders are also aware that there is a cooling off period every year and Aashaada happens to be that”.

The trend among buyers would be to make inquiries and investigate properties, make choices, be ready with their preference but go in for purchasing only after the inauspicious period ends. 

The slump is not only in sales of apartments, but sites too. Suresh Prasad, who wanted to buy a site after selling off two sites in Mysuru had this to say, “I had made an agreement with another resident who was selling his site. I agreed to buy the site. I made the decision based on my decision to sell two sites I have in Mysuru. That would have given me the money I needed to buy the site in Bengaluru. But two buyers who had agreed to buy the sites from me suddenly said they would make the purchase only after August because of Aashaada. Now I don’t have the money to give to the person who is selling his site to me. We have agreed to put off the purchase and sale for September. Hopefully, everything will go right”.

Nagaraj Reddy, builder and president of Credai, Karnataka, says there will be a slump in the high-end real estate sector. 

“People can afford, but at the same time they believe in traditional concepts. I have noticed over the years that high-end apartments sell slower than mid-end and affordable ones. Today, vaasthu, aashaada and auspicious time are all concepts very strongly ingrained in citizens. As builders, we have to be prepared for this slowdown. By September, sales will pick up again”.

The saving grace

A notable trend during the slump period is the interest shown by buyers from Andhra Pradesh and Tamil Nadu. Aashaada in Karnataka doesn’t coincide with Aashaada in Andhra Pradesh and Tamil Nadu, so buyers from these states make a beeline for Bengaluru to make purchases of apartments and sites. This is one important source of income to builders in Bengaluru and Karnataka during the inauspicious period.

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