As the real property market in India is preparing for the holiday season that includes festive deals, many home buyers make no acquisitions in this Pitru Paksha period, also referred to in the Indian context as the Shradh. The time in Pitru Paksha runs for just more than two weeks and is regarded as an inappropriate time to make reservations for houses.

The year of Pitru Paksha runs from September 29 to October 14, and during this time, Hindus perform rituals for their ancestors.

The reason people choose not to book houses during this time?

“There is a belief wherein people do not do registrations or bookings during this period. However, there are verbal inquiries, but if we say closures, they happen after Pitru Paksha. Many times, closures happen on the first day of Navratri, which is on October 15 this year,” said one of the developers in Mumbai who would not like to be identified.

Another developer from Pune in India, where 80% of home buyers are young techies, stated, “The trend of not purchasing or booking a house during Pitru Paksha is not that widely practiced among youngsters these days. However, purchasing a home is a big event in life, which youngsters generally do after consulting their parents or elders. Hence, the elders of the house ask youngsters to not close deals during this period.”

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Registration of properties in Mumbai

In September the number of properties registered in Mumbai in September 2023 as compared to 10,900 registrations during August 2023. At the beginning of October 2023, amount of rolls per year dropped because of Pitru Paksha; however, this is not the case during the second half of the month due to the arrival of other festivals such as Navratri, Durga pooja, and so on.

She stated that over 80 percent of launches within Bengaluru will be to North Bengaluru. “The upcoming infrastructure, including the metro and the proximity to the international airport has shifted a lot of residential demand towards the north. Though the eastern IT corridor of Whitefield remains a favoured choice, it is saturated and getting land is challenging there,” Shankar stated.

Eighty percent of the coming launches will fall in the middle-income category, and ticket sizes will range between Rs 80 lakh and 1. 1.5 crore.

“Previously, the same segment was priced at Rs 60 lakh to Rs 1.3 crore. But customers have increased their price points. About two years back, the apartments we were selling at Rs 6,000 per square feet (psf) are today selling at Rs 8,000 psf,” Shankar said.

It is reported that the company stated that the percentage of luxury apartments being launched has grown by 5-10 percent at present. The firm purchased a parcel of land on Mount Road in Chennai for more than 500 crore. Shankar stated that the project will include luxury apartments that cost up to six crore rupees.

Costs of living in apartments are rising.

The Karnataka state government announced on September 19 that the value of guidance could be increased by 20-30 percent starting October 1, 2023. But, it could rise as high as 50 percent in the most dense IT corridors, revenue minister Krishna Byre Gowda had said.

The Guidance Value is the minimum price at which the sale of a property is able to be recorded with the state’s government. It is also referred to by the term “circle rate” in certain conditions.

In reference to the possibility of a rise in the cost of apartments, Shankar added that the rising demand isn’t just due to an imminent increase in the guideline price. “There are several reasons for the real estate demand in Bengaluru today. While the price of Brigade Group apartments should not increase much otherwise, the hike in general may be significant depending on how the guidance rates are changing,” Shankar said.

At present, Brigade Group has a debt of over Rs 3800 crore. The majority of this debt is due to the building of office space.

In the past, Brigade Group told Moneycontrol that the firm would be adding around 2 million square feet of office space in Grade A in Bengaluru at the closing of the financial year.

“We have a debt ratio of 0.5 percent. With the residential segment comprising 70 percent of our business, we believe our debt will remain stable over the next few quarters,” she said.