Realty players line up launches to cash on festive season

There is good news for home buyers as a slew of project launches this festive season will leave consumers spoilt for choice. But does this mean a price discount as well? Priyanka Ghosh of CNBC-TV18 finds out.

Faced with uncertain demand, the past two years have seen limited project launches by real estate companies. But this year, developers have decided to take the plunge. Desperate to generate momentum and cash flow, the next three months is expected to see a flurry of launches across markets.
Amit Bhagat, MD & CEO, ASK Property Investment Advisors, says that the number of launches planned will be market specific. I expect a good number of launches in Mumbai in the festive season; Pune will also see healthy launches; so will be the case in Bangalore, Chennai, Gurgaon; Noida may not see as many because land allottments have not started so far. In all these markets prices will not drop; some discounts will be offered by players who are not able to sell effectively to end customers
Among leading players, Godrej Properties is expected to launch another phase of Godrej Summit project and its Chembur project by the end of December;
Lodha Developers has just launched Lodha Fiorenza and Lodha Elisium. Oberoi Realty is expected to launch a phase of its Esquire project. In Bangalore, both Sobha Developers and Puravankara Projects have three launches lined up each.
Other major players who have a line up of launches include Bombay Realty, DLF and Rustomjee Builders.
So, are there any takers? Well, If Godrej Property's new launch at Gurgaon and Larson and Tubro's Kurla launch are anything to go by, the pent up demand in key markets will lap up attractively priced projects. Both projects, attractively priced, have already sold out within a couple of days, selling over 1100 apartments cumulatively
But with supply growing the real test could begin now especially as most projects are not offering any discounts except the 80-20 scheme where the interest cost on home loans is borne by developers during the construction of the project. Moreover, the macros of high inflation and steep rates hasn’t really helped sentiments.