Friday, 27 March 2015

Can Navratris bring cheer to the real estate market?

Developers across India are struggling with low sales and sluggish real estate market. They are deploying every possible move to connect with consumers this Navratri season. Various offers and freebies have been launched to push the sales figures. Industry experts believe that festivals mark the way for celebrations in India. Navratri time is considered to be an auspicious in India to make big investments such as purchasing a property, a car or gold.

“Many families at this time of the year, in India, plan to upgrade or buy homes as it is considered ideal for wealth creation. Investors are aware of this traditional sentiment and bring out offers and discounts to attract buyers,” says Anuj Puri, chairman & country head, JLL India.

What are the offers?

Developers provide lot of deals  such as discounts on basic selling price, gifts such as TVs or a free holiday, free car parking, modular kitchen depending on the price of the property. They often change the payment terms, booking amount and booking rate and make them more flexible.

For example, some developers launch special payment schemes for their luxury projects. Under the scheme buyers are expected to pay only 10 per cent of apartment cost on booking and rest of 90 per cent is payable on possession only.

While others offer cash discounts, for example buying 3BHK units at the cost of 2BHK units.

Some offer gold coins to the early birds booking homes at the property carnivals while others a chance to get a luxury car.

Will it help in lifting the sentiments in the Indian real estate market? The residential market in many cities currently has a high housing inventory. Property seekers have galore options to choose from. Puri says, “Sentiment has improved to some extent and both buyers and investors are investigating their options. Among the many possibilities for investors, apartments in emerging locations are ideal as the rates tend to be lower and usually backed by discounts during the festive season. Apartments near upcoming infrastructure possess good future appreciation potential.”

So is it a good time to buy? “Discounts are definitely the most desirable scenario for end users and investors”, Puri advices. However, it is important to know what the prices were prior to the discount announcement. Offers where developers waive off stamp duty and registration can also be considered, as this translates into an actual saving on the cost of the property.

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