Flexible payment, maintenance waivers, penalty for late possession making homes cheaper
Hit hard by the pandemic, real estate developers are lining up attractive offers like flexible payment plans, assured penalty in case of delayed possession and maintenance waivers for over two years to push sales during the festival season.
Another reason behind the promotions is a gradual uptick in demand. A pre-festive channel check report by Emkay Global Financial Services suggests residential sales recovering by 50% of pre-Covid levels, primarily driven by record low financing rates, upfront discount and relief on stamp duty. Besides, city-centric sales are driven largely by younger customers (32-38 years), an aspirational buyer class.
Sensing some pent-up demand, Migsun Group launched ‘possession proof homes’ where it is offering an assured 1% penalty every month in case of delay in possession. Homebuyers have to pay 10% initially and 90% on possession. It is applicable on projects in Ghaziabad and Greater Noida.
Another developer, Gaur Group is offering a payment plan with 10% down payment within 30 days, 40% within one year, and remaining 50% at delivery on its projects in Ghaziabad and Greater Noida West. It is also offering gifts like laptop, washing machine, microwave and refrigerator.
Mahagun Group is offering multitude discounts like 25 gram gold, pay 25% now and rest later, waiver of 25 months’ maintenance fee, 25% off on stamp duty and compensation of 25% in case of delay in project. Offers are valid on projects in Noida, Gr Noida and Ghaziabad.
Analysts said developers are giving offers to lower overall cost by 10-15%. “They offer 5-8% discount as soon as you come, then many offer to pay registration charges, waive maintenance costs, cover EMIs, etc,” a senior executive with a developer said.
Anarock Property Consultants chairman, Anuj Puri said assuming a 1,000 sq ft property in Bengaluru costs `80 lakh, including basic cost, parking, stamp duty and registration charges, plus an additional Rs 5 lakh for woodwork, the effective total cost is Rs 85 lakh. Builders are offering a discount of Rs 100 per sq ft on basic cost (Rs 1 lakh), waives car parking charges (Rs 2 lakh), waives stamp duty & registration charges (around 7% in Karnataka) and no EMI till possession (hypothetically three years), and modular kitchen (about Rs 2 lakh).
Here the buyer gets an instant discount of Rs 5 lakh on basic cost, car park and kitchen. The benefit of waived stamp duty and registration is around Rs 5.6 lakh. Cumulatively, the buyer’s cost is reduced by around 10.6 lakh on a property costing Rs 85 lakh, roughly a 12.35% discount.
Consultancies and listing sites, too, are coming out with attractive offers. For instance, Housing.com launched the ‘mega home utsav’, running from October 7-November 14. It expects to reach over 25 million buyers through the event, which would see participation from over 100 builders. The portal has also collaborated with over 1,000 channel partners along with banking partners.
Bullmen Realty India introduced Bullmen Shield, under which developers are registering their properties, which will then be verified. It is assuring buyers double their stuck amount in case of non-delivery by developers listed with its programme.