The festive season, along with a number of recent measures by the government, is expected to offer significant momentum and help revitalise the real estate sector.
The Indian real estate sector has recently been experiencing a significant slowdown owing to a number of disruptive factors, including the introduction of laws like RERA and GST. While the tumultuous impact of these legislations has gradually begun stabilising, there is still a long way for the industry to recover, and even match up to the boom period of 2006 to 2010. However, the festive season, along with a number of recent measures by the Indian government, is expected to offer significant momentum and help revitalise the sector.
Strategic Value Offerings
There is a significant rise in investment during the festive season, with customers looking to leverage the many attractive discounts and deals offered by developers and agents. For real estate organisations, this is the most strategic time to drive up buyer sentiments through special pricing plans. However, in order to gain a competitive edge over contemporaries in the market, tried and tested methods like lowering prices and waiving off stamp duty and registration charges are no longer enough. Developers need to leverage data and insights-driven market analysis to come up with innovative strategies that cater to the unique nuances of customer demand. These include collective bargaining, offering higher customizability, personalisation, and control over the design of a house, and more.
Innovative Pricing Plans
In addition, developers should also look into creating specialised payment plans to attract potential home buyers, by introducing EMI payment plans, 20:80 payment schemes, or even assured rental, until or after possession. Often times, a highly flexible, yet secure the payment plan can be the ultimate deciding factor for a prospective homebuyer looking to make an investment in a property.
The government’s renewed focus on affordable housing further offers immense opportunity for developers to leverage its potential, by attracting targeted consumers through affordable housing schemes. Recent trends also highlight an increased interest from millennials in modern, compact housing in the affordable range, equipped with convenience-driven amenities. Thus, the festive season, in this regard, is the perfect time to introduce a range of new affordable housing projects, utilising the increased demand during this period.
In India, an investment decision, such as the purchase of a property, is heavily influenced by auspicious dates, Vastu, and numerology. As such, the festive season, considered a highly auspicious time for investment, is uniquely suited for the promotion of Vastu-compliant homes. By tapping into the specific preferences of Vastu-conscious buyers, even from the millennial segment, developers can drive up sales through targeted campaigns and promotions.
Linking of Home Loan Rates to Repo Rate
Lastly, the recent decision by the Reserve Bank of India to make the linking of home loan rates with the repo rate mandatory will also help developers gain significant profits. The increased discount on interest rates while availing a home loan of less than Rs 45 lakh, valid till March 31, 2020, will benefit developers immensely, owing to an increased demand from potential homebuyers. By leveraging this, developers can drive up sales and target a newer segment of customers through a strengthened portfolio of offerings.
(By Rahul Grover, CEO, SECCPL)