Festive season ideal to buy a new house

Festive season is considered to be the ideal time to purchase new residential property. This is primarily due to the fact that most developers and builders offer various promotional schemes in the form of discounts and freebies to attract prospective buyers. With the festive period starting this year with various festivals being celebrated across the country, it is the ideal time for developers to cash in by boosting their sales figures in view of any impending festival season coming up. With Akshaya Tritiya coming up soon, this presents the ideal opportunity for buyers to cash in on the discounts/freebies offered by many developers.

Feasibility of providing festive offers:

With the real estate sector across the country going through a slump since 2013, buyers are adopting a wait-and-watch approach with regards to choosing the ideal house they wish to purchase. In such a scenario, developers find it extremely difficult to sell their inventory at desired values, without compromising on their margins. Since reducing values of residential units permanently would result in severe losses with regards to any particular project, it would be more feasible on the part of developers to provide discounts or freebies during festive periods so that the momentum thus gained through sales during such periods can be carried over in the future as well.

Akshaya Tritiya:

With Akshaya Tritiya fast approaching, many developers would go into over-drive so as to promote their projects that have either been completed or are nearing completion. Since Akshaya Tritiya is an auspicious occasion for Hindus to buy new commodities like gold and vehicles, it is also believed that buying a new house during this period as well as occupying a new house would bring good luck and prosperity. Hence, it is an ideal period for undecided buyers looking to buy a new house to invest in their dream home by availing of the discounts/freebies that developers offer during this period.

Developer offers, discounts and freebies:

Besides discounts and freebies offered, many developers also offer other benefits like discounts on stamp duty, registration fee and brokerage. Discounts offered on the sale price range from a few thousands upto about 1-2 lakh, depending on the cost of the residential unit. Freebies include various electronic products like television, fridge, washing machine, A/C, among others. Household articles like furniture, cooking range, and the like are also provided by many developers as freebies. Other offer gadgets like PCs, laptops, tablet phone and smart phones as well as two-wheelers and even cars as freebies depending on the value of the house.

Developers and buyers to benefit:

Festival periods work favourably for both developers and buyers. While developers can expect to sell more units of their available inventory, buyers can expect to avail of discounts that are not available during normal periods. Hence, it is a win-win situation for both parties. According to reliable sources, about one-third of the sales of developer projects happen during festival periods. However, there is a flip side to such offers provided by developers. Many developers offer freebies and discounts by re-packaging their normal offers to appear as though they are beneficial to buyers.

Buyers to tread with caution:

Hence, buyers have to be wary about such festive offers so that they are not taken for a ride by developers engaging in such underhand practices. Besides, they should not fall for offers, compromising in the process what they are looking for in their dream home. Hence, their buying decision should primarily impinge on the features offered in the residential unit as well as the location of the house. Besides, the amenities and the infrastructure facilities that the area offers should also be given more importance than the festive offers extended by developers.