With over 81,300 unsold homes are ready for possession in top seven cities, it may be a good opportunity for you to bargain for a good deal this festive season.
With over 81,300 unsold homes are ready for possession in top seven cities, it may be a good opportunity for you to bargain for a good deal this festive season to buy the home you are looking for, as the realtors desperately want to recover the funds stuck in the projects in absence of ready liquidity due to crisis in NBFC sector.
According to ANAROCK research report, about 6.56 lakh units were lying unsold on Q3 2019 end across Mumbai, Bangalore, NCR, Chennai, Hyderabad, Pune and Kolkata, and out of these nearly 12 per cent are ready to be occupied.
Anuj Puri, Chairman – ANAROCK Property Consultants says, “Among the top seven cities, MMR has the maximum ready unsold stock equaling nearly 21,000 units, followed by NCR which has nearly 16,800 unsold ready units and Pune with 14,260 ready units. In the South, Bangalore and Chennai have an almost equal number of ready unsold supply with 10,640 units and 10,160 units respectively. Kolkata has 5,620 ready unsold homes, and Hyderabad has the least ready stock with about 2,520 unsold units. Hyderabad also has the least overall unsold stock (of 23,890 units) among the top seven cities.”
Implementation of a slew of reforms, such as RERA and GST, within 6-8 months of demonetisation disrupted the real estate sector hitting the sale of residential units most.
“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,” says Rahul Grover-CEO of SECCPL.
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However, according to Grover, the following factors during the ongoing festive season are expected to offer significant momentum and help revitalise the sector:
Strategic Value Offerings
Like other traders showering deals and discounts to capture maximum possible share of festive spending, for realtors also, this is the most strategic time to drive up buyer sentiments through attractive discounts and deals as customers too looking to leverage such deals offered by developers and agents, resulting in a significant rise in investment during the festive season. However, to attract customers unique methods like collective bargaining, offering higher customisability, personalisation, and control over the design of a house etc are now used along with tried and tested methods like lowering prices and waiving off stamp duty and registration charges etc.
Innovative Pricing Plans
Apart from the attractive deals and discounts, developers also introduce innovative payment plans to reduce the financial burden on customers by introducing EMI payment plans, 20:80 payment schemes, or even assured rental, until or after possession, etc to attract them. Such lucrative plans may prove to be the deciding factor for a prospective homebuyer to invest in a property due to availability of a highly flexible, yet secure the payment option.
The government’s affordable housing scheme has made the dream of owning a home realisable and also offers immense opportunity for developers to leverage its potential, by attracting targeted consumers through such schemes. Affordability of compact houses equipped with convenience-driven amenities has also caught the attention of the millennial.
Mostly, Indians take investment decisions like purchase of a property after taking into consideration many factors including auspicious dates, Vastu, and numerology. As festive seasons are considered highly auspicious time for investment, it would be a suitable time for Vastu-conscious buyers, even from the millennial segment, to invest and realtors also grab the opportunity to promote Vastu-compliant homes through targeted campaigns and promotions.
Linking of Home Loan Rates to Repo Rate
The The Reserve Bank of India’s (RBI) decision to make it mandatory to link of home loan rates with the repo rate would make home loans cheaper, which in turn would drive the housing demand and 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. Developers may leverage the opportunity to drive up sales by targeting newer segment of customers through a strengthened portfolio of offerings.