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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Akshay Tritiya and Gold

As Akshay Tritiya arrives, gold once again takes centre stage in Indian households. For generations, buying gold on this auspicious day has been considered a symbol of prosperity, purity, and good fortune. It is not just a purchase. It is an emotion, a blessing, and a tradition passed from one generation to another. But beyond tradition, gold also carries an important financial lesson. Gold is not just jewellery. It is an asset. Gold During Uncertain Times Over the years, gold has proved its...

Akshay Tritiya and Gold

As Akshay Tritiya arrives, gold once again takes centre stage in Indian households. For generations, buying gold on this auspicious day has been considered a symbol of prosperity, purity, and good fortune. It is not just a purchase. It is an emotion, a blessing, and a tradition passed from one generation to another. But beyond tradition, gold also carries an important financial lesson. Gold is not just jewellery. It is an asset. Gold During Uncertain Times Over the years, gold has proved its worth not only during festivals, but also during uncertain times. Whenever the world faces wars, inflation, currency weakness, economic slowdown, or financial panic, investors across the globe look at gold as a safe haven. This is because gold has a unique quality. It is trusted across countries, cultures, and generations. It does not depend on the promise of one government, one company, or one currency. Why Gold Holds Value Unlike paper currency, gold cannot be printed endlessly. Unlike businesses, it does not depend on profits or management quality. Unlike real estate, it is globally accepted and easily valued. This is why gold continues to remain one of the oldest and most respected stores of value. It has survived centuries of change, economic cycles, wars, and financial crises. The Right Role in Your Portfolio That said, gold should not be treated as a shortcut to wealth creation. Equities and equity mutual funds still remain essential for long-term growth. Gold plays a different role. It brings balance, stability, and protection to your portfolio. When equity markets are volatile or global uncertainty rises, gold often provides comfort. A sensible allocation of around 10-20% to gold can help reduce overall portfolio risk.  So basically, while stocks and equity mutual funds play the lead role in your long-term financial goals, gold plays the supporting but essential role. Physical Gold Has Limitations However, the way you invest in gold matters. Buying physical gold during festivals may feel emotionally satisfying, but it comes with practical challenges. There are making charges, purity concerns, storage issues, risk of theft, and liquidity problems. A necklace may be beautiful, but you cannot easily sell only a small portion of it when you need money. Also, when gold is bought as jewellery, the investor often forgets to calculate the actual return after making charges and deductions. Smarter Ways to Invest This is where Gold Mutual Funds and Gold ETFs become useful. They allow you to invest in gold without worrying about lockers, purity, theft, or storage. You can invest flexible amounts, start SIPs, track value easily, and redeem conveniently when required. For investors who want gold as part of their financial plan, these options are far more practical than buying jewellery purely as an investment. Tradition with Financial Clarity Akshay Tritiya is a beautiful reminder that wealth should be built with faith, patience, and clarity. Buying gold is auspicious, but buying it in the right form is financially wise. This Akshay Tritiya, celebrate tradition - but also upgrade your financial thinking. Because true prosperity is not just about owning gold. It is about owning it smartly. (The writer is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Luxury home sales drop, budget houses boom

Mumbai: The city’s realty sector is worried as the demand for luxury homes dropped drastically against a sharp hike in the sales of budget category houses, in the first half of 2025, latest industry data has revealed.

 

As per data released by ANAROCK Group, the inventory of unsold deluxe homes – in the Rs. 2.50-crore plus range – has shot up by 36 pc in Q1, first time since 2022.

 

The figures are startling – 8,420 units remain unsold in Mumbai compared with 6,180 units during the Q1 2024-end – a first since 2022 when unsold luxury housing stock saw an annual increase.

 

In contrast, the sales of various categories of budget houses, sub-2.50 cr, notched a significant increase of 6 pc from Jan-May 2025 – a record 64,461 properties registered, compared with 60,818 during the same period in 2024.

 

ANAROCK Group Chairman Anuj Puri attributed it to several factors including considerable new unit additions in the luxury sector - 16,480 (2024) plus 5,294 (2025).

 

“While demand for these homes continues to remain strong, skyrocketing prices and headwinds like global economic slowdown have hit the sales of these homes in the past one year,” Puri pointed out.

 

He added that in Q1-2023 high-end unsold stocks in Mumbai declined by 29 pc – from 18,340 units (Q1 2022-end) to nearly 13,040 units (Q1 2023-end), and by Q1 2024-end, the unsold luxury stocks fell by a significant 53 pc to around 6,180 units.

 

Adding colour to a gloomy scenario is the boom in the budget homes category which notched an unprecedented 64,461 property registrations in Mumbai from Jan-May, 2025 – against 60,818 registrations during the same period in 2024, as per data of the Inspector General of Registrations.

 

The average ticket prices of these properties stood at Rs 1.59 cr, the highest since 2019, and in 2021, the average prices of properties sold was the lowest at Rs 1.02 crore. The government mopped up a handsome Rs 5,695 crore from Jan-May 2025 (against Rs. 4,860 in Jan-May 2024), a 17 pc annual jump.

 

ANAROCK research found that in Q1-2025, as many as 21,930 units were sold in Mumbai which was 28 pc lower than the sales witnessed in Q1-2024.

 

A key factor behind the surge in property registrations from Jan-May 2025 is credited to the 3.9 pc hike in Maharashtra's ready reckoner rates for FY26.

 

Real estate experts-speak:

Realtor Nitin Sunderji Shah, Partner, Shri Om Sai Developers said that luxury home buyers prefer mega-housing complexes with extra amenities like swimming pool-club houses, etc.

 

“They shun stand-alone buildings, especially if they are the redeveloped category owing to ‘status disparity’. Some discerning buyers prefer row-houses, independent bungalows in large complexes, so many luxury units are languishing,” Shah told The Perfect Voice.

 

Realty consultant R. K. Kamble said that besides the usual factors, people have no savings for property investments, the hiccups witnessed in the stock markets, the prices of gold, the current political situation, etc., which weigh on public sentiments, particularly in the middle-upper segments.

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