Hit hard by the prolonged slowdown in the real estate market, property developers are betting big on the current festive season for revival of their fortunes. In fact, they got into the festive mood a bit earlier as many of them were seen coming out with the festive schemes even before the start of the season, while others have unveiled their offers just now.
Industry experts say that as the festive season is considered very auspicious for the purchase of property and close to 30-40% of yearly sales are generated during this short period itself, developers make every effort to woo customers with freebies and discounts. And this festive season is no exception. In fact, this year more innovative schemes are likely to be witnessed in the market, particularly in view of the mounting unsold stock of property.
Nitesh Punjabi, Associate Director, Capital Markets and Investment Services at Colliers International India, says that purchase of a home for Indian buyers is a special occasion. In addition to the purchase being an investment or a need, it is also of a huge emotional and sentimental value.
Generally, a buyer starts selecting the purchase based on his needs. The selection starts with the location considering the distance from the work place, social infrastructure such as schools and medical centers, shopping centers and entertainment destinations. The buyer then shortlists a few projects which satisfy his apartment requirements such as size of units, amenities and specifications. In addition to this, in order to satisfy their sensibilities, buyers also focus on many soft aspects of the project such as vastu and timing of the purchase.
“Earlier, the purchase was linked to the festive season for multiple reasons. A part of the money needed for those purchases came through from bonuses, which in those days was distributed around the festive season. Also, most of the purchases during those days were first time purchases. Hence, the sentimental value was a lot higher. Most of the earlier purchases were also self-funded. So, the sentimental attachment was much higher,” says Punjabi.
Over the past decade-and-a-half or so, the markets have changed and the purchasers have evolved. Today, in the age of housing finance companies, any shortfall in the funds can be met via bank loans. Today, the buyer is also much younger and not a big believer in making purchases on auspicious days.
However, during the festive season, the sentiments of the people are much better as they are emotionally geared up to make decisions regarding high-ticket purchases. Real estate developers take advantage of these sentiments and offer various schemes during the festive period to cash in on the buoyant sentiments. Lots of freebies, discounts and deals are offered across projects to target buyers to enable them to make quick decisions. Due to this, most of the buyers like to wait for the festive seasons to start so they can evaluate the best deals and take informed decisions,” informs Punjabi.
It, thus, works well for the entire eco-system as through various schemes, developers are able to target the buyers with buoyant sentiments while the buyers get the advantage of the schemes offered by various developers.
What’s on offer?
Whatever be the case, there are offers and freebies galore as developers are vying with each other to entice customers. In the NCR alone, developers raging from DLF to M3M Group and Vatika Ltd, and from Mahagun to Gaurs to Saya Group have something to offer.
For instance, for some of its projects, Gaurs Group has come out with ‘Double Diwali Dhamaka’ campaign under which 21 free gifts such as No GST, free car parking, AC in every bedroom, free LED TV, semi-modular kitchen, wardrobes in every bedroom, water purifier etc along with free registry are on offer. “For Gaur Yamuna City, buyers can get an assured car on every booking of apartment. For Gaur Saundaryam & Gaur Sportswood, there are 14 free gifts and special offers, which would help avail flats at only 10% during booking along with no pre-EMI till possession. For commercial properties at Gaur City Center & Gaur City Mall, there is a Lucky Draw which can give buyers a chance to win Hyundai i10,” says Manoj Gaur, MD, Gaurs Group and Vice President, CREDAI National.
In its Navratri offer, Vatika Ltd is providing ready-to-move-in fully-loaded smart homes starting from Rs 5,349 per sq ft. These are available at three of their condominiums – Independent Floors, City Homes & Lifestyle Homes – which are a part of their township Vatika India Next. The benefits include installation of electrical appliances like ACs and television, semi modular kitchen, free car parking, power back up, and club membership. “Buyers can choose from 2-BHK to 4-BHK homes. All the projects are part of our fully integrated township and are located strategically at the intersection of 2 national highways – NH 8 and NH 248 BB. The township has 11 residential projects with 6000+ families living there, 4 clubs, 13 play zones, 3 swimming pools etc. All the projects are ready-to-move-in. Therefore, buyers will save up to 12 per cent on account of GST,” says Anupam Varshney, Vice President – Sales and Marketing, Vatika Ltd.
RG Group is giving freebies worth Rs 2 lakh in its RG Residency project. Ansal Housing, on the other hand, has come up with affordable plots in Karnal, which have a subvention scheme for 100 months. The offer allows customers to pay the plot’s value in 100 months without any interest. Also, they can pay only 10% of the property price and enjoy the benefit of no EMI till they get possession.
Nirala World is offering around 15 freebies in its Nirala Estate project this Navratra, which include 100% waiver on stamp duty charges, free car parking, free club membership, Split AC, LED TV, wardrobes and semi modular kitchen. Similarly, in its ready-to-move-in units in Fresco and Dreamville projects, Exotica Housing is offering free home appliances like LED TV, AC in each room and refrigerator, besides modular kitchen and wardrobe, among others.
“In India, the season of festival begins with Navratra. People buy new car, clothes, home appliances etc. during this season. Home buying can’t be an exception when people save money for years to invest and get their own home. Investing in home is not only traditional, but considered to get assured appreciation after some time. During the entire year people hunt for quality homes with good amenities and wait for good offer or deals. We get maximum conversion of queries in this season, from Navratri to Diwali,” says Dinesh Jain, MD, Exotica Housing.
Some developers’ offers, however, are centred around better payment plans rather than giving freebies and lucrative stuffs. For example, in the Ajnara Olive Greens project of Ajnara India Ltd, buyers can book their home by paying only Rs 31,000 with additional benefit of zero per cent down payment. Likewise, the Saya Group is offering a striking payment plan for its Saya Gold Avenue project. Interested buyers can book their home by paying only 10% of the total price with no EMI till the offer for possession. Also, during the festive season, buyers will get a free car parking space along with their home.
Developers’ expectations from the festive season
Here are the views of some of the developers on the festive offers and sales:
Pankaj Bansal, Director, M3M Group: “We have once again come up with a unique campaign for our ready-to-move-in residential projects. Under our new offering, buyers have to pay just 1% as down-payment & move into the residence of their dreams and pay the balance interest-free home loan for the first time in India. The same is valid on ready-to-move-in 2-3-4 BHK residencies starting from Rs 80 lakh in M3M Woodshire, Sector 107, Gurugram & Ultra luxury 3 & 4 BHK residencies starting from Rs 4 crore in M3M Golf Estate, Sector 65, Gurugram.”
Harinder Dhillon VP Sales, DLF Ltd: “Festival season is the most auspicious time for property purchase. Every festive season is different from the other since we take major leaps and grow further every year. We have so much to offer this time and the handover of our latest property ‘The Skycourt’ has already begun. Transactions have increased significantly and we expect this number to increase even further compared to the last season.”
Kamal Taneja, MD, TDI Infracorp: “In our township TDI LakeGrove, we are offering up to Rs 9-lakh discount on the booking of a flat. We hope that our offer will help our customers make a lucrative investment and also support us to get new customers.”
Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger: “The festive season has always been encouraging for the real estate market. With the real estate ecosystem stabilizing in 2018 due to industry-friendly policies like RERA and GST, we have announced Home Utsav 2018. The month-long festival started from October 01, 2018 and will continue till October 31, 2018. The festival will enable buyers make investment and home buying decisions, by bringing an irresistible bouquet of deals and discounts.”
Deepak Kapoor, Director, Gulshan Homz: “Starting from Navratra, the festive season brings in a lot of happiness and optimism not only for the developers but also for the home buyers. Considering it as an auspicious time, for our project Gulshan Bellina at Greater Noida (West), we have come up with an attractive payment plan for the home buyers whereby they can book their flats by paying just Rs 75,000 and the rest amount can be paid around the possession of their flats.”