How About A Foreign Vacation Free With Your New Home?

The real estate sector has slowed down over the last two years owing to a large number of reasons. The recent developments such as the Real Estate Regulatory Authority (RERA) Act as well as demonetisation added fuel to the fire. However, developers are leaving no stone unturned to woo buyers. Prospective home buyers are going to be spoilt for choice. Reason: there is a large inventory overhang in the market today and secondly, more and more discounts are being rolled out to make projects even more appealing. 

Attractive offers seem to be the only way out when it comes to pushing sales in a market that is currently on a low. Srishti Amar, sales manager at Golden Pillars Infracon Pvt Ltd, says, “Any discount or offers would be a boost to buyers' sentiments. At present, there are a plenty of queries for popular projects but the pricing is high. Prospective buyers are at an unpredictable stage whether to proceed with a project or wait.”

So what can you see in the market today? Customised payment plans, assured rental returns, gold coins, iPhones, iPads, discounted interest rates, cars, foreign vacations — developer firms have strengthened their marketing outreach. Even realty portals are coming up with campaigns showcasing popular projects on one platform. 

Also read: Expecting Property Price To Fall After Demonetisation Move? You May Be Disappointed

“There has been a lot of confusion in the market post-demonetisation. There were many stuck in the midst of a deal or just waiting to close. Now, most buyers want to wait till the rules are notified and they also want to see prices going down,” says Manohar Patil, broker, Eredict Properties.

A large part of this unpredictability has percolated to the grassroots level because many developments that have been proposed this year may have larger consequences in the future. For example, it is expected that by the time RERA and demonetisation seep into the market and is settled, property prices may come down. Although nothing concrete has been discussed so far on the subject, a prospective buyer is sitting back, waiting for the best. “Most buyers are in no haste now. They have waited for two years already and there is no loss if they wait for another 6 to 8 months,” adds Patil. 

Industry experts believe that a developer with a clean track record will be able to do business. However, much of the focus is on completing projects that are still under-construction. This could be because of two reasons. Firstly, in a bid to escape project delays, serious buyers are going in for ready-to-move-in projects or those that are nearing completion. Secondly, RERA will tighten its noose around firms that are delaying unconditionally or beyond an accepted time. Therefore, it makes sense for developer firms to wind up construction than taking on additional work. 

Should you go in for attractive offers? 

Yes! And why not. This may be the only way you might be availing of rate cuts and benefits on the unit of your choice. However, take note of the fact that while these make for a lucrative offer, your choices should not be based solely on this. Check for the legality of the project and know what is at stake. If your precious money dunked into an unauthorised construction can get you a free car, it doesn't do you any good. Also, if there are clauses attached to any such deal, make sure you get them documented for your convenience. The devil lies in the detail. 

Deals floating in the market

Some firms have extended their festive offer schemes on to the next few months. As per the data available with PropTiger, the following  schemes have been very popular across the country.  These include no prefential location charges, free car parking, floor-rise charges waived off, 20 gm gold with 1BHK, 40 gm gold with 2.5 BHK unit and so on. Some developers are also offering up to Rs 10 lakh off on 2BHK units or even EMIs till possession. The payment schemes such as 5-95 per cent off, modular kitchens, free AC sets, assured rentals of up to Rs 5,900 per month for 2BHK units and up to Rs 7,500 per month for 3BHK units, free furnishing, loan processing fees, booking fees and transfer fees waived off, cash vouchers etc have also become very popular with the buyers.

So does sales actually go up in the festive season and thereafter? Here's what the trends as per PropTiger say.

Figure 1: City-wise Festive period Contribution to total annual Sales during FY'2015 and FY' 2016

Note: Festive Quarter includes Oct, Nov and Dec months

Also read: Real estate festive offers: How to make the right choice?