While Goddess Laxmi is wooed this season, so are consumers, whose every rupee spent is money earned for many starved industries, given the spate of events that have unfolded this year. Every shop will be giving discounts, be it for electronics or even cars. In such a scenario, it is but natural for us to try and seek deals everywhere and expect everyone selling something to do so at a discounted price. This is a mindless assumption with no sensibility attached to it on our parts, but, it is Diwali and like so many other religious and superstitious things that occur, this, is another ritual so to say.

The real-estate sector, however, has been one of the most hit by the changing economic climate of the world. While prices were a while ago on an all-time high in both residential and commercial areas, with consumers galore, and plenty of people even taking loans to buy property, the cycle seems to have now changed. While the new-found wealth in the nation and our inherent fear of credit eroded, the average home-owners age in the city has fallen from 35 years to just 27. Things were going great for the sector, given the basic economic laws of supply and demand working in its favour, to keep prices up. However, the sector has always had a lot of glaring drawbacks, to say the least, many of these being fundamental in nature. These ranged from complete lack of transparency, high cash transaction component and over-valuation. Now, given the change of tides and fewer people investing in property each passing day, one has been expecting real-estate prices to fall for a while now and stabilise at its true value. All the industry experts have been expecting the same. However, even though barely a few people have been buying property these last few months, very few builders have revised their prices, leaving this entire sector in a state of drudgery.

Pankaj Renjhen, managing director, Jones Lang LaSalle Meghraj, Mumbai feels, ?The markets have been going through a period of blues and there are not as many opportunities here as before. Developers are yet to come down from their prices, though in certain areas the prices should crash sooner than the others. There are very little actual sales happening and if one wants to invest in real estate from an investment point of view, doing so in 1BHK flats or studio apartments is better. To buy real estate for personal use, an ideal waiting period should be 6 months before jumping into the fray. 1BHK flats and studio apartments provide good rental opportunities, especially in work centers like Mumbai, Pune, Bengaluru, etc.

The prices have been moving up for rent and the demand is still steady here. Developers are also offering incentives like paying the stamp duty, registration fees and even giving free parking space to investors who are looking to purchase now, at the current prices. These incentives may or may not be available post the Diwali season. So if one has to buy property now, make use of these value additions. However, those who can hold on for another 6 months or at least wait till January or February, when the prices should correct themselves, should do so. For those keen on investing in Diwali, they have these incentives to make use of or should invest in smaller 1BHK and studio apartments.?

With reports confirming the fact that real-estate is not at its best currently and may worsen, freebies is the way they have chosen to go for now. They are very reluctant to slash prices yet. So instead, things ranging from free trips to Switzerland, free parking lots, stamp and registration fees being paid for, an offer to pay a part of the EMI and discounts on furniture and electronics, are all being used to lure customers in. This is a big surprise from what has happened over the years, when during the festive season, real estate prices would stiffen due to the surge in demand. Some developers have tied up with banks in an arrangement that if the customer takes a loan from this bank/s to purchase the house, they should be given a loan of up to 90% of the cost. Such an occurrence is rare and this is another innovative incentive being offered.