The sum of the sops, according to Knight Frank India, is significant and has brought down home prices by 8-12% in India’s top eight cities.
Stressed to the core, developers of all hues are rolling out incentives to clear their inventory. And this time around, the sops are more in the form of upfront cash benefits rather than freebies such as consumer durables, travel vouchers or discounts on interiors. The cash benefits include zero stamp duty, zero floor rise and zero maintenance charges. Homebuyers also have the option of paying just a fraction of the cost upfront and the remainder in a staggered manner over several years.
The sum of the sops, according to Knight Frank India, is significant and has brought down home prices by 8-12% in India’s top eight cities. Customers, ANAROCK Property Consultants chairman Anuj Puri, believes are comfortable with paying 10% upfront rather than coughing up 50-70% only to discover the developer is not ready with the apartment. “These are not subvention schemes but staggered payments to convert latent demand into sales, especially in the ready-to-move-in space,” Puri said.
At its ready-to-move-in project in Esquire in the western suburbs of Goregaon, Oberoi Realty is allowing buyers to move into the new home with a 25% upfront payment; the remaining 75% is to be paid interest-free in equal instalments of 15% over the next five years. At its under-construction project in central suburb of Mulund, Oberoi is offering both bank and developer subvention schemes. Buyers can book a home for just 10% of the value and get stamp duty benefits.
Sunteck Realty has rolled out a 10:90 scheme at SunteckWorld, Naigaon & SunteckCity, Goregaon. The apartments can be booked with a 10% down payment with the remaining 90% paid at the time of possession. The developer promises to complete the project in less than six months.
Godrej Properties was running a similar 10:90 scheme across projects. For the 10 days of Ganesh Chaturthi, the company ran 10 offers which included, inter alia, zero booking amount, zero floor rise, zero EMI till March 2021 and zero interest on stamp duty for properties in Mumbai.
Mumbai-based Wadhwa Developers is running a campaign called ‘postpaid’ homes across its projects in central suburbs of Mulund, Thane, Ghatkopar and western suburbs of Goregaon. The scheme allows the buyer to get ready possession and move in post a 10% payment and nil GST. Moreover, there’s a moratorium till July 2021.
The Hiranandani Group is guaranteeing rental income with capital appreciation on property investments in its 1BHK houses in the central suburb of Powai. The developer is promising Rs 50,000 per month as rentals, with an annual escalation of 5%, against the overall cost of apartment priced at Rs 1.49 crore all-inclusive. The assured rental scheme, it says, will earn an average return of 4.5% per annum; after tax, the net earning is 3.18% versus a fixed deposit post-tax return of 3.05%. Meanwhile, in a concerted effort, more than 600 developers of Mumbai Metropolitan Region, Pune and Nashik holding over 1,000 projects have decided to bear the stamp duty on residential property bought till October 31, 2020. Home sales crashed to decadal lows between January and June 2020 with new launches falling 46% year-on-year to 60,489 units. Unsold inventory in June was 4.46 lakh units, virtually unchanged from levels in June 2019.