Developers are not showing interest in new launches and have increased focus on incentives and discounts to push sales with projections that sales could witness sluggish activity for at least six months.
Even as the already beleaguered real estate sector races to meet construction deadlines while grappling with supply chain and labour constraints, developers in Delhi-NCR have sold close to 1,500 units during the lockdown period, beginning March 25, helped by attractive schemes and promotional offers.
Market insiders pointed out that prices are largely stable amid weak sales and high unsold inventory. Developers are not showing interest in new launches and have increased focus on incentives and discounts to push sales with projections that sales could witness sluggish activity for at least six months.
While NCR-based developers Gaurs group and Migsun group together booked more than 1,200 units between March 25 and June 3, 2020, rest of the sales were spread among realtors in Noida, Greater Noida, Delhi and Gurgaon.
When asked about total sales in the national capital region, Gaurs group director Sarthak Gaur told FE: “I think the total sales for NCR should be in the range of 1,500 units”.
Gaur noted that his company booked 700 units valued at around Rs 225 crore during lockdown (March 25 onwards) with around 70-75% being residential and the rest commercial.
Talking about promotional offers, he said, “Initially, we started with ‘ghar baith ghar khareedo’ offer, where we charged only Rs 1 lakh as booking amount for a flat and then gave them 100 days. In early May, we offered 10:90 scheme, in which you pay 10% while booking and rest on delivery”.
On the commercial side, Gaurs offered customers to pay 10% during booking, followed by 30% after a year and the rest on possession.
“Good thing for us is that for most of our projects on offer, the structure is ready. So people were able to relate. Also the offers are tempting. For instance, the flat is `50 lakh and you just have to pay Rs 5 lakh. Then for two years you don’t pay anything,” he added.
Migsun group managing director Yash Miglani said they were able to sell more than 502 units for around Rs 252 crore between March 25 and June 3 with almost 95% of sales being residential.
“All deals were online. Customers saw the size virtually and some had also visited physically before lockdown. We offered schemes. Firstly, we offered price guarantee. Secondly, we gifted 151 household items like TVs, refrigerator, washing machine, ACs, etc. Then we have the three months EMI waiver scheme,” he added.
On the price outlook, Miglani explained, “I don’t think prices will come down as developers have already slashed them substantially and many are offering incentives. We can’t go below that as cost of construction is increasing and labour cost has gone up too.”
Miglani projected that payment from customers would be a challenge during this time as many are reluctant to pay hue sums due to lack of stable cash flows and the situation could persist for the next 6-8 months.