Offers Cars, Gold, A/Cs to Property Buyres : Festive Season to Improve the Mood of the Real Estate Market.

Trust the festive season to improve the mood of the real estate market.

LAKSHMI KRUPA finds out about the deals on offer

Even as home buyers grapple with the eternal ‘to buy or not to buy’ question, builders / promoters are gearing up to make up for lost time in the upcoming festive season, with offers of cars, gold & even air-conditioners to customers.

A project in Perungalathur from StepsStone is offering a free modular kitchen & free registration for all spot bookings while Cee Dee Yes Infrastructure Development offers a free Hyundai Eon with a 3 BHK flat & a Maruti Alto with a 2 BHK.

The innovation does not stop here. If you do not want a free car, the builder offers to give you rental returns upfront to the tune of Rs. 3.96 lakh for a 2 BHK apartment and Rs. 5.76 lakh for a 3BHK.

Besides this, there are offers of free car parking,  free Registration, free EB connections, free sewage treatment plants, waiver of legal and documentation charges, and so on.

Mr. Advitiya Sharma, Co-founder and Marketing Head, Housing.com, “The unsold real estate inventory has been dampening the industry’s mood this year. Now, with the festive season around the corner, the market is likely to pick up again.”

The other reason behind the freebies is the Reserve Bank of Indias (RBI’s) clamp-down on schemes such as the 20:80 payment scheme. Builders / promoters are working hard to find alternative ways to attract buyers.

One of these is to monetise the waiting period.

Chennai - based XS Real, for instance, is offering a ‘No pre-EMI until possession deal’.  Mr. Vikas Ramanathan, Manager - Sales, explains, “We have had a lot of enquiries and closed 6 deals in one day. Since the RBI has abolished the 20:80 scheme, we are offering a No Pre-EMI scheme. Here, upon an upfront payment by the customer we offer cheque payments to him or her for the EMIs until the property is handed over.” If you cannot bear rental and EMI expenses simultaneously, such offers are worth exploring.

According to Makaan.com, which has done a research of festive season expectations & offerings in the real estate sector, “Looking at the economic condition of the India , developers / promoters are taking a cautious approach this festive season but they do not want to disappoint buyers & lose out on an opportunity to revive sales.” Their research shows that several developers plan to launch between one and five projects this season, while about 27% are more upbeat and might launch 5 to 10 new projects.

Although the overall number of launches this year (2013)  is likely to be lower than last year (2012), the number of discounts and freebies is likely to be more. The Makaan.com report shows that about 29% of developers are considering offering more than 5% cash discount, while 21% is willing to offer 2 to 5% discounts. “Moreover,” says the report, “homebuyers can also expect offers such as ‘pay 40% at the time of booking and balance on possession’ or ‘pay 20% at the time of booking and no EMI for next 12 to 18 months’.”

When we scouted the Chennai market, there was not much by way of cash discounts. However, there were other offers that could work to the buyer’s advantage, such as better instalment facilities or value additions to their home. The other major attraction this season is the offer of up to 500 grams of gold with each new booking. Mr. M.K. Prakash, Olympia says, “We are offering four grams of gold with a booking as well as 2 air-conditioners to encourage customers. We have already sold nearly 78% of our inventory and we are confident that the remaining 22% will be sold with these offers.”

Also, use the festive season to up your bargaining power. Mr. N. Hariharan, Office Director, Cushman & Wakefield, says, “The ongoing festive season is an apt opportunity from the end-users’ perspective as they can take the advantage of flexible payment schemes, the various offers, and sometimes even reduced interest rates on housing loans.”


Src: Hindu 
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