Several real estate developers are doling out offers this festive season primarily centred around financial and flexible payment schemes, unlike last year when they offered freebies such as modular kitchens and gold coins.
Also, there are fewer festive offers available since the demand is robust, real estate experts said, adding that branded developers, which are expected to launch new projects this season, may refrain from giving offers due to the healthy demand.
Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE said a significant number of first-time homebuyers may enter the market this season. “An increasing number of fence-sitters are likely to finalise their decisions based on the enticing festive season offers and discounts extended by developers. The premium and luxury real estate segments (Rs 2-4 crore and above) are set to emerge as highly coveted investment choices, particularly among high net-worth individuals (HNIs) and non-resident Indians (NRIs) looking to safeguard their investments amidst the prevailing global macro-economic uncertainties,” he said.
Past trends
Pre-Covid, most of the offers during the festive period included different subvention schemes and freebies such as free gold, modular kitchen, etc. However, post Covid in 2020 and 2021, more than subvention schemes, developers offered stamp duty or GST waivers and freebies as well. In 2022, mostly freebies were on offer including gold coins, phones, modular kitchens etc. Interestingly, many of the projects that witnessed good sales hardly saw any offers.
“This year we expect similar trends as housing demand is robust and when demand is high there are fewer festive offers. Moreover, since major launches will be by the top and branded developers, they will refrain from giving many offers as they are already witnessing healthy housing sales. Thus, festive offers this year will be a function of demand and supply. Even then, this is an optimal time to buy as prices are set to increase further. It makes sense to utilise the festive offers and seal the deal before that happens, said Anuj Puri, Chairman - ANAROCK Group.
Also Read: Residential sales in first nine months of 2023 touch 91% of 2022 sales: JLL
According to a recent report by JLL, residential sales of 196,220 units were recorded in the top seven cities during the first nine months of 2023 – almost 91 percent of last year’s sales – and are set to surpass 215,000 units by the end of the year.
Steady interest rates and the ongoing festive season sentiment will lead to sales outpacing last year's numbers and touching a new high this year. Demand for residential apartments will be backed by a robust supply pipeline as developers announce new launches and enter newer markets including peripheral micro markets where infrastructure augmentation is in process or planned, according to JLL India’s Residential Market Update – Q3 2023.
Strategic land acquisition in prime locations as well as in growth corridors is expected to strengthen supply. The residential market is expected to remain buoyant and achieve the next wave of growth and expansion with good response from buyers in the mid as well as premium segments, it said.
Offers this festive season
Ayushi Ashar, director at Ashar Group, which is involved in the redevelopment of the bungalow of Bollywood legend Dilip Kumar in Mumbai’s Bandra area, said the company has introduced an offer where the customer can make payments in instalments by paying just 30 percent. It is also offering a zero stamp duty scheme and a special payment plan of 40:30:20:10.
Listed developer MICL said that “quality doesn't need offers.”
Praveer Shrivastava, senior vice president and head of residential, Prestige Group, said that the company has introduced a 25:75 flexi payment plan for the projects Prestige Valley Crest Mangalore and Prestige Ocean Crest Goa where the homebuyer will be paying 25 percent of the amount upfront and the rest of the amount can be paid upon possession. Similarly, it is offering a 50:50 payment plan on Prestige Tranquil in Hyderabad.
Bengaluru-based BCD Group is offering assured rentals for homebuyers for two years at 7 percent.
Angad Bedi, Managing Director, BCD Group, said, “The residential segment is currently bullish with a good balance between demand and supply and builders are in a position to walk the extra mile in terms of giving great festive offers. This season BCD group is offering assured rentals for homebuyers for 2 years at 7 percent. As a part of the one-time special offer, buyers will be given guaranteed rentals on their purchases. In the luxury segment, some developers may also give offers like discounts on premium amenities, retrofits, furnishings, and appliances to attract homebuyers.”
In Delhi-NCR, Experion Developers said their festive offer will allow homebuyers to avail discounts worth up to Rs 59.99 lakh along with free home appliances worth Rs 9.99 lakh on immediate bookings of premium properties such as the duplex villa. Buyers of apartments and penthouses can get a 10-gram gold coin with each booking.
The Gaurs Group is offering two years’ free car parking and two years’ free maintenance on each booking for its commercial project Gaur City Centre located in Noida Extension or Greater Noida West. For its Gaur Aerocity Mall commercial project located in Ghaziabad, the Gaur Group is offering 20-gram gold coin on every booking along with two years’ free maintenance. For its commercial project Gaur World Smart Street, the group is offering a free registry, GST-free BSP and three years’ free maintenance.
What should homebuyers keep in mind?
If a homebuyer is being offered a freebie that he already owns or does not need, he can opt for other discounts. For instance, if a developer has offered ACs in two rooms and the hall in a 2BHK apartment, one can instead seek a reduction of a lakh from the total outgo. Buyers should try to get a fix on how these freebies translate monetarily.
Buyers looking to buy a house this Navratri should understand that today’s market is a buyers’ market and that they should bargain hard before signing on the dotted line.
With inputs from Mehul Thakkar (Mumbai), Ashish Mishra (Delhi-NCR) and Souptik Datta (Bengaluru)
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