04 April,2011 06:32 AM IST | | Debarati Palit
People wary of investing in gold, buying vehicles; realty sector fares better during festival
Merchants and businessman did not have much to celebrate this Gudi Padwa. The usually high business registered during this auspicious time of the year saw a damp response from the people.
Beyond their means: The high prices of gold and silver have kept people
away from the jewellery stores, this Gudi Padwa. Representation pic
People usually invest in jewellery, real estate and other assets to mark off a prosperous lunar year, however, this time, industry insiders claim that the business has not been impressive. Blame it on inflation or the increasing prices of yellow metal, people are wary of making huge investments. Although gold and silver are the hot-favourites to invest in during Gudi Padwa, their rates have increased during the year, and thus have affected the overall demand.
Rajesh Soni, Manager, PNG Jewellers said, "There hasn't been any growth in the demand for gold. People are spending according to their budget. Silver too is getting expensive and people are thinking twice before buying it."
Cars and motor business experienced a similar situation. An official from Sai Service Station said, " We have got just 15 to 20 car bookings in the past two weeks. The number is less compared to last year."
Real estate, on the other hand, seemed to fare better. Although the number of properties sold this year is not huge, it is more than the previous year. Businessmen say that they have done around 20 to 25 per cent of the total property business they undertake throughout the year.
Rohit Gera, Vice President, CREDAI, Pune said, "Buyers inspect and shortlist the property in advance but sign the documents on Gudi Padwa. It's two weeks before the festival and one week, after that we see a lot of business."
Mohan Agarwal, Bunty Properties said, "The reason for good business is not just Gudi Padwa. Other factors like increasing cost of construction, escalating property prices and an increase rate of interest on home loans are pressurising people to make an early investment in houses."
The Festival
Also known as Ugadi, Gudi Padwa is celebrated on the first day of the Hindu month of Chaitra. People raise a gudi (banner) with a swastika-marked pot and silk cloth at main places in front of their houses. The gudi is viewed as symbol of victory and wards off evil.
