Buying a property this Festive Season? Be Aware!
With the festival season approaching, home buyers are hoping for a plethora of offers by the builders across various properties. However, one must not get carried away in their expectations. This is mainly because, currently, the overall sentiments are very positive and the Indian realty market is looking very upbeat. In addition, the new policies and initiatives announced in the budget recently has brought in more cheers to the sector.
While it is still too early to mention the offers being put up by developers during the upcoming festive season, it will also be illogical to say there will be many freebies on offer. There might be a huge supply of ready-to-occupy properties in the MMR market, but it is unlikely that builders will give many offers in such properties.
Even last year, when the realty market was witnessing a slowdown, prospective buyers were merely offered a teaser price cut of 5-10 per cent in certain localities, while in the remaining properties builders shied away from giving any discounts or freebies at all. Hence, there is really no logic for builders to give several offers this season given that the market is very upbeat.
However, one can expect a few offers in the new launched properties or those in the pre-launch stage. These offers may vary from a miniscule price negotiation to certain freebies such as gold coins etc. to various options in paying one’s EMIs etc.
What’s new this year?
One cannot overlook the fact that even under severe conditions in realty sector in 2013, builders were not really ready to bend. This is also because approval procedure is way too lengthy and there is a cost attached to it. Further, construction cost is only increasing. While certain offers did persist in 2013 across the country, there were many builders who preferred to hold on to their inventory.
And now with improved sentiments, they will be willing to hold on to their ready-to-occupy properties even more rather than giving many offers. Additionally, CommonFloor data points out that the difference between last year and this year is that there is an increased supply now with many projects getting completed over the last 6 months.
Interestingly, despite this increase in supply, builders will not give many offers to lure property buyers because they know that the buyers who have been on a wait and watch policy for the last 4-6 months will now definitely take the plunge, irrespective of the fact that there are offers or no offers.
Will it impact market sentiments?
Currently, the overall market sentiments are very positive in the backdrop of a stable government. New policies and initiatives announced recently will also work in favour of the realty sector. Thus, it will be illogical to say that the offers by builders will change sentiments in the market. Also, at the macro level one has to see that there is very less time gap between the new policies announced and the festival season which is just round the corner. The actual realisation of the benefits can be felt only in the next few months.
CommonFloor data indicates that buyers are today spoilt for choice and they visit various properties in person before zeroing in on one to buy. For those prospective buyers who have been on a ‘wait and watch’ policy over the last 6-8 months will not be affected by the rains. This is only because they had already selected the property beforehand and were only waiting for the right time to buy. The festive season will definitely be the most auspicious and preferred time for property buying.
