Lots of developers are offering discounts during this festive season as they are optimistic about the sentiment in the market.
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Post pandemic, the festive season was expected to be cold for the real estate sector owing to the misplaced perceptions about the way people behave in financially tough times. However, the recently gone Navratri period went quite well for the sector as many developers clocked big sales. The response so far is an indication of a sparkling Diwali for developers.
In the previous years, developers had resorted to sweet deals such as up-front discounts, 0% GST, waived stamp duty and registration charges, free reserved car parking, modular kitchens, etc. This year too, the developer community has come up with offers that are an added coating on the sweetener provided by the all-time low home loan interest rates. The Diwali offers comprise luxury cars, easy payment options, assured gifts, etc. The Navratri period has proved that there are buyers in the market, who are specifically interested in real estate after the pandemic triggered the need to look for financial security. The government also provided boosters with measures streamlining the sector and easing out the burden of buyers.
The sector is heavily sentiment-driven and figures coming out of the Navratri season are an indication of the positive mood. For instance, Migsun Group, a leading real estate firm in Delhi-NCR, claims to have clocked daily average sales of Rs 10 crore between October 1, 2020, and October 31, 2020. Similarly, figures from other major developers are also trickling in.
The stage is set
The bonhomie is reflected in the sales figures for Q3 2020; according to Real Insight Q3 2020, a quarterly analysis of India’s eight prime residential markets by leading online real estate brokerage firm PropTiger.com. Residential home sales aggregated to 35,132 units during Q3, an increase of 85% over the previous quarter. Experts believe that the sector can look forward to a minimum housing sales increase of 10-12% in the upcoming Q4 2020, which is a conservative estimate as it is far from the increase of 20-25% witnessed during relatively calmer years.
The availability of 15-year low home loan interest rates and extension of delivery timelines under force majeure are some of the steps that have made the journey comfortable for the sector. The PropTiger report says that the quarter-over-quarter percentage change in sales is reflective of the mood towards real estate as Ahmedabad witnessed an increase of 183% QoQ, Bangalore (74%), NCR (135%), Chennai (77%), Hyderabad (197%), Kolkata (88%), Mumbai (62%), and Pune (45%).
In the top 9 cities, the festive quarter FY 2019 witnessed sales of 91,464 units with around 10,000 units in Noida and Gurugram alone.
Lots of developers are offering discounts during this festive season as they are optimistic about the sentiment in the market, unlike last year when there were hardly any discounts owing to the liquidity crunch. HFCs were also seen distancing from subvention schemes, which had limited the developers’ working capital. The GST rates without input credit had further squeezed the developer community, and the developers restricted themselves to discounts to buyers sealing the deal by giving them a waiver of GST, stamp duty, and registration charges. However, this year the scenario seems to be different.
For instance, Gaurs Group is currently running a campaign “FESTIVAL OFFER 2020” which includes 9 gifts for Gaur Siddhartham and Gaur City (14TH Avenue & 7th Avenue) projects. Likewise, Gaur World SmartStreet’s ‘Mauke pe Chauka’ scheme makes owning a commercial property an easy affair with an easy payment plan with 10 per cent down payment within 30 days, 40 per cent with one year, and the rest 50 per cent at the time of delivery.
Raheja Developers has also come out with ‘Chance to win luxury Car & Gold Coin’ offer under which it is giving a chance to the buyer to get cars depending on the amount of investment.
Housing.com is running ‘Mega Home Utsav’ till November 14, 2020, on projects from 10 major cities of India — Ahmedabad, Bengaluru, Chennai, Delhi, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida (Gr. Noida) and Pune.
Hero Realty Pvt Ltd is offering gold coin/ gold vouchers for Hero Homes Ludhiana, Sidhwan Canal Road, and home décor vouchers worth Rs 2.5 lakh for Hero Homes Mohali, Sector 88.
Ajnara India Ltd is offering a 10:90 payment plan in Ajnara Daffodils, 30:40:30 payment plan in Ajnara Ambrosia, and 20:20:20:20:20 plan in Ajnara Fragrance. Rajasthan-based Bhumika Group has come up with an assured gift on every booking and 12 per cent assured return at Urban Square Mall, Udaipur.
Signature Global has ‘Special offer and Assured gift’ for Signum Plaza 4, Sector 36, Gurugram, South of Gurugram, Signum-107, Signum-81, Signum-71, Signum-103, Signum- 37D, Signum -93, Signum-36, and Signum-95A. Migsun Group has come up with ‘Possession Proof Homes’ offer where they are offering assured 1 per cent penalty per month in case of delayed possession.
Sikka Group is offering 40-60 Payment plan for its low-density project Sikka Karnam Greens, Sector 143 B, Noida. The group has also announced that price is all-inclusive and will waive off other charges. Mahagun Group is offering a multitude of discounts in the form of 25 gram gold, pay 25 per cent now and the rest later, waiver of 25 months’ maintenance, 25 per cent of on stamp duty, and compensation of 25 per cent in case of delay in the project.
Bhutani Group has come with a unique offer whereby the buyers can get the annual return in advance after making the down payment. The mega offer will work on their 50:25:25 plan and be available on all their commercial projects in Noida — Grandthum (Sector 1, Greater Noida West), Cyberthum (Sector 140A, Noida) and Alphathum (Sector 90, Noida).
Saya Homes at Greater Noida West project, Saya South X, is offering assured gift vouchers of Rs 10 lakh to anyone booking a shop. Chandigarh-based GBP Group is incentivizing its buyers by offering them lucrative gifts on every booking at its project GBP Central Town & Smart City in Zirakpur. Pacific Group has come up with ‘Flat Discount’ for Pacific Golf Estate, Dehradun, whereby the group is offering Rs 100 off on every per sqft at Pacific Golf Estate, Dehradun – 1, 2, 3 BHK & Penthouses.