Good News for Buyers-Some real discounts from Builders

Good News for Buyers-Some real discounts from Builders

By siliconindia   |   Monday, February 16, 2015   |    1 Comments

New Delhi: Perhaps, it’s good news for those buyers who are planning to buy a home in India’s big cities as there is some real offers. Real estate Builders in Bangalore, Mumbai, NCR and Kolkata are offering some real discounts to lure prospective buyers such as 25 percent discount on per sq ft rates. Almost 3 percent point interest subvention on home loan rates, free modular kitchens and free studio apartments for those who buy top floors of luxury residential building, air conditioners and wardrobes.

According to property research firm Liases Foras; home sales data is that rare economic indicator that is declining to increase – 832.09 million sq ft of unsold inventory as on quarter ending December and 8 percent decline in sales as on end December. Increase in the home prices on paper, 7 percent rise in catalogue prices in the December month hides the actual picture of the realty market.

Market watchers say that many Builders are offering raining freebies to cut headline prices as they feel that the real discounts are the better response to this surplus real estate supply. However, due to the real supply glut investors and builders are stuck with unsold inventory. Few of them are willing to sell their property at lower prices than current market price.

A man who witnessed many real estate booms and busts, chairman of HDFC, Deepakh Parekh says that “it’s a good time for buyers who are willing to start investing in top Indian cities.  Particularly expensive homes are not selling, it means in perspective of Mumbai the apartment which costs more than 1 crore are finding less buyers”. Builders and developers are worried in terms of sales. They need to acquire minimum bookings to raise construction finance, Ahwin Chawwla, CEO of Big Deals in explained.

President of Estate Agents Association of India, Yashwant Dalal says that; even though the builders offering bigger incentives to brokers, the numbers of sales recorded are less. The main problem is the lack of home buyers. In this situation, buyers have no options than offering raining freebies to woo perspective home buyers. Here is a short list of few Raining freebies offering by real estate majors across the country.
 

  • Tata Housing Development Company is offering subsidized home loans at 7.99 percent for 25 projects in 8 cities where the banks home loans are around 10.5 percent and Dosti Group is also offering the same scheme for its projects in Wadala and Thane.
  • In Mumbai, Lodha Group organized a one day flash sale at its Lodha Grandezza project sited at Wagle Estate in Thane and offered an 8,406 per sq ft flash sale discount.
  • In Mumbai, Neptune Group is offering buyer’s possession on 50 percent payment for its Bhandup project where as the rest of the amount to be paid in 36 installments.
  • In Bangalore, Brigade Cresecent, Marvel Developers and Leela Residencies are offering Free modular kitchens, air conditioners, Top range Wardrobes for high end properties.
  • To Lure Buyers Bangalore major realty giants like Nitesh Estates and HM Group are offering 15 percent cash discount on each sale.
  • In NCR, Supertech developers are offering free studio apartments for those who buy top floors of a luxury residential building in Noida named Cape Town project.
  • In Gurgaon, Developers are asking buyers to pay a little amount up front and pay the rest of the amount after move in.
  • In Kolkata, Siddha Group and Eden Realty are offering a free new car on Rs 54 lakh apartment and lucky draw rewarding on Rs 80 lakh Apartment for home buyers.

Knight Frank India, Executive Director, Gulam Zia says that; Builders are playing many tricks and offering real discounts to lure buyer interest but no luck/success so far. Experts say that; the real upswing in the buyer’s interest can attain through large interest rate cuts on home loans. “There will be a reduction of 100 basis points in interest rate, above the announced rate cut in this year 2015”, Deepak Parekh reckons added. The sound revival in realty demand will be the good news for home builders and even better for home buyers.

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