Festive Season in and so is the Demand for Realty

Bangalore: In India, the real estate market is enhanced during the festival season. Most of the people show their interest to make investment during this auspicious time due to the attractive offers given by developers, which leads to the increase in demand for real estate units, Prabhakar Sinha of TNN.

Surprisingly, with the increase in demand, developers offer discounts and concessions to potential home buyers in order to increase their sales. Not only developers come up with concessions, even finance companies and banks reduce their interest rates so that more home buyers can buy properties during this auspicious season.

Usually, the real estate market is optimistic from the beginning of the festive seasons that means the time period between October to December.

During this season, developers offer many freebies and bonanzas to buyers. Some of the concessions are buyers do not pay EMIs for the first two years or till the time buyers get their possession, free modular kitchens, gold coins, LCD television sets and so on.

Whereas, to take a closer look, such offers do not reduce the property prices but act as a catalyst to attract more and more potential home buyers.

For instance, taking into consideration the offer of not paying EMIs for two consecutive years will allow buyers to buy a house even if their income is not enough to make EMI payments. This may help buyers to pay EMIs after arranging funds in two years.

However, to attract home buyers during this season, some of the most prominent private sector lenders cut down their home loan interest rates upto 100 basis points. Also, banks like State Bank of India slashed their base rate by 9.75 percent.