The festive season brings auspiciousness in life and hence, there has always been a surge in demand for real estate during this time. We are sure that your inbox must already be flooded with freebies and discounts on property purchase. So, have these offers convinced you enough to buy a property this festive season? Well, whatever may be your answer, CommonFloor.com presents you a ‘reality check’ of festive discounts and offers along with ‘what's making news’ in the market.
First Surprise Just Before the Festive Season!
“I don’t know what you want to call me. Santa Claus or Hawk… My name is Raghuram Rajan, and I do what I do.”
With these line, RBI Governor reduced the repo rate by 50 basis points bringing it to 6.75 per cent, the lowest in the last four years.
Following this, several banks slashed their interest rates. SBI took the lead by reducing 0.40 per cent, making the current lending rates 9.70 per cent. Other banks that followed the suit includes Allahabad Bank, Dena Bank, Punjab & Sind Bank, to name a few.
Welcoming the move, Vikas Bhasin, MD, Saya Group says, “Investing in property involves heavy duty fund management and allocation. Those buying a property on loan are under a double-edged sword, where high EMIs can sting hard. Thus, this move by RBI will provide the property buyers with reduced EMIs, thus reducing pressure on their pockets.”
What’s up for Grab?
• Ajnara is providing a 7-7-7 scheme for certain projects where the customer needs to pay only 7 percent of the property cost at the time of booking; will get Rs 7 lakh discount and the unit will be offered for possession in the next 7 months.
• Supertech Limited has launched an exclusive ‘9 Days of Navratras - 9 EMIs free’ scheme for its customers during the auspicious 9 days of Navratras. This offer is applicable from the first to the last Navratra on all the projects of Supertech across Noida, Greater Noida, Ghaziabad, Gurgaon, Meerut, Muradabad, Rudrapur, Haridwar and Bangalore.
• For Prateek Stylome, Prateek Group, is offering bouquet of offers depending on the size of unit customer is booking. Different sized units will carry different options such as free stamp duty, free club membership and free power backup of up to 5KVA.
• Saya Group is offering 10:80:10, No pre EMI scheme for its recently launched project ‘Saya Gold Avenue’ located at Ghaziabad.
• For ‘Gulshan Ikebana’, Gulshan Homz, is offering goodies for ground floor and top floor units. A completely installed Modular kitchen with chimney will be provided to the ground floor flat buyer and completely installed Modular kitchen with chimney, and in addition to this 4 installed split A/C (brand- LG/Samsung 4 star rating) will be provided to a top floor flat buyer.
• Shri Group is offering scheme valid only for new buyers for top floor apartments of ‘Shri Radha Sky Gardens’ located at Greater Noida West. A customer interested for 2 BHK/2BHK + Puja units can take a discount of Rs 90,000 or 3 ACs free of cost. Customers interested for 3 BHK units can take a discount of Rs 1,20,000 or 4 ACs free of cost. The company has also come out with two new payment plans; special payment plan Rs 3,200 all-inclusive with dedicated open car parking and subvention payment plan Rs 3,395 all-inclusive with dedicated open car parking.
• JM Housing is offering 30:70 payment plan for JM Aroma, where 30 percent of the amount is to be paid at the time of booking and rest on possession. Also, 5:95 payment plan with No EMI till offer of possession for JM Florence where 5 percent of the amount is to be paid at the time of booking.
• Rudra Buildwell Pvt. Ltd. has come out with a scheme for buyers who are interested in buying units that are 1,450 sq. ft. in size or above. As per the scheme, the company will provide the unit with a complete modular kitchen. This scheme will only be available at the time of 9 days of Navratris.
The Current Face of the Market
While these festive schemes and offers are a way to boost market sentiments, at times, offering of possession is also considered to be a great news in the sector. This also helps in pushing the market sentiments forward which paves way for the demand for property purchase.
In this backdrop, let’s see what will be available in the primary market. As per CommonFloor data, all the major cities will see a healthy supply of units in Q4, 2015. Consider the table below.
So, Does Sales Actually Go Up During Festive Season?
Developers see this festive season as a great marketing opportunity to dole out freebies to customers as it gives a further boost to the sentiment of investment in realty.
However, giving a different viewpoint, Akshit Shah, AVP - Capital Markets Research, JLL India explains, ‘the average age of home buyers has come down from the mid-50s to the mid-20s. The younger generation prefers to take informed decisions and focuses on better bargaining opportunities rather than auspicious days to purchase property.’
Adding to it, he says ‘a larger part of this industry announces salary hikes and bonuses in the second quarter. The manufacturing and trading industry, on the other hand, announces bonuses during Diwali - which falls in the fourth quarter.’
Good time for bargains
With sky reaching property prices, developers are stuck with lot of unsold inventory. Coupled with this is the liquidity crunch they are facing with investors reluctant to invest due to low returns and buyers refusing to buy property. Thus, with pressure mounting, it is good time for buyers to go for smart bargains.
Word of Caution!
Property is one of the biggest buys of one’s life. While you may tempted seeing the offer, ignoring that small aestric at the end reading conditions apply can get you the worst nightmare of your life.
Here are four tips that can prevent you from falling into a trap:
-These offers are usually applicable for projects in which units are not easily selling.
-Read the terms and conditions thoroughly.
-Check the clauses pertaining to cancelling the booking or changing it.
-Do a double check on the project that is on discount.