Incentives to clear the inventory
After Bangalore, NCR developers are also using new and different strategies to attract the investors and buyers. The realty firms in NCR has begun to offer easy and flexible payment plans to their customers to buy apartments. Builders feel that, this is one of the way, they can clear their mounting inventories.
NCR remained as one of the expensive areas in India and stubbornly held high prices for years in the face of sluggish sales with crippling liquidity crunch. Finally developers come round to the fact that but for offering comfortable payment plans to prospective customers, they have no chance of survival. looking at the scenario, developers decided to negotiate with their customers on cost.
New schemes for customers:
There are few developers offering various incentives and attractive schemes to customers like construction incentive to the buyers and also construction incentive to those who book plots for CHD City project in Karnal. Developers of City project are also ready to offer incentives and gifts for referring the project to other prospective buyers.
Projects by Parsvnath Group has launched new housing scheme of 25:75 payment.This scheme is applicable on 20 of their projects in New Delhi, Ghaziabad, Greater Noida, Sonipat and Dharuhera. However, this project is getting good response already.
Developers like SVP has launched ’50-50 scheme’ in phase II of our Gulmohur Garden project where the customer has to pay 50% on booking and the rest on possession.
Although in such cases, developers settle for 20-30% from their customers and are ready to wait for the remaining sum if the buyer is ready to pay this amount upfront. According to some realtors, the market leader DLF has also received positive response to its 20:80 scheme.
Not only incentives, but developers are also trying to attract the customer through loan. The customers applies for a loan for a flat that is under construction for 21 months of the loan period the customer need not pay any pre-EMIs, henceforth, pay all the interest for first 21 months. This scheme is a win-win situation for both developers and buyers.
Will incentives increase the sell?
The liquidity crunch is forcing builders to reduce prices and also offer various schemes in order to clear inventory. It is also possible that some builders may drop the prices to some extent.
According to experts, Delhi-NCR residential market has around 1.20 lakh units in unsold inventory. But it is obvious that staggering number and realty players would like to see their inventory reduce fast.
This new trend started from Bangalore and slowly conquering the major cities. After Delhi NCR, now even major builders of Mumbai have either cut prices or introduced flexible pricing within a single project or the launched innovative schemes which have enticed buyers to cough up large sums to book properties even before the project enters the construction stage.
