It may not be raining discounts this Navratri 2024 but a few real estate developers are offering some payment plan schemes, apart from the usual gifts, such as a gold coin, phones, modular kitchens and international holidays. Having said that, realtors this festive season are mostly offering incentives in the affordable and mid segments where sales remained tepid in Q3 2024 to sweeten the deal.
According to Santhosh Kumar, vice chairman, ANAROCK Group, if developers do go on to offer discounts and incentives, it would mostly be in the affordable and mid segments where sales remained tepid in Q3 2024. โThe luxury segment has been performing well in comparison to these two segments, so there is less reason to sweeten deals. Also, luxury housing buyers are not as attracted to such offers as those of affordable and mid-range housing,โ he said.
In the affordable and mid-segment, certain offers and waivers can cause cost-sensitive buyers to take a second look. But they will focus more on the actual property and the project and may consider offers that make the property more affordable to them. All things considered – to say that offers other than hard discounts and statutory fees waivers reduce the time to sell properties would not be appropriate, he added.
According to a report by Knight Frank, the share of affordable housing during the quarter ended September declined by 14% annually with Mumbai and Kolkata emerging as the outlier markets where sales in the segment grew in year-on-year terms. โThe combined impact of rising prices, higher home loan rates, and the relatively adverse effects of the pandemic in this sector persisted, suppressing demand,โ the report noted.
Sales in the mid segment โ homes in the price range of โน50 lakh to โน1 crore – also witnessed a drop of 13% year-on-year in Q3 2024, as homebuyersโ focus shifted to the higher priced category during the quarter. According to the report, the corresponding decline in new launches in this category also played a part in the sluggish sales.
Also Read: Housing sales up 5% at 87,000 units across top 8 cities in Jul-Sep with Mumbai topping the list
Housing sales are generally higher during October-December compared with the previous two quarters because of the festival season that is considered an auspicious time to buy a home. This year again, sales during October-December are expected to remain buoyant, said real estate experts.
โThe housing market in the country continues to show strong momentum, now entering its fourth year of a structural upcycle. While overall growth in housing sales has slightly moderated, the higher-end market remains robust, ensuring that the upcoming festive season will sustain growth in both sales and prices. Looking ahead, increased participation from the low- to mid-value segments will be crucial. Key factors such as large-scale transit-oriented infrastructure development, government fiscal support, and the expected moderation in home loan interest rates are anticipated to boost affordability, enabling these segments to again participate in the ongoing housing boom,โ said Vivek Rathi, National Director- Research, Knight Frank India.
Whatโs on offer this festive season?
A few developers have or are planning to launch new projects this festive season. Anant Raj Limited is planning to launch luxury designer apartments, called Estate Apartments in Sector 63A, Gurugram, within its existing integrated township. Signatureglobal Business Park, a subsidiary of SignatureGlobal India, has launched a new project, Daxin, Gurugram’s X Factor, located at Sohna Toll Plaza, South of Gurugram, Sohna, Haryana. The project is spread across an area of 125.60 acres, with an overall development potential of 7.2 mn sqft.
Rajdarbar Ventures, a Delhi-NCR based real estate firm, is holding a lucky draw where it plans to offer customers a chance to win a luxury car worth โน15 lakh. It is also offering a 20-gram gold coin to its channel partners with every booking.
Also Read: Festive season 2024: Mumbai real estate market reports 10% drop in property registrations during Ganesh festival
Escon Infra Realtors is offering a scheme wherein by investing in a 3000 sq ft or larger sized properties, buyers will receive a debit note of โน6 lakh. Customers opting for lower-sized units will receive six split air conditioners or a debit note of โน2 lakh. Additionally, all property sizes will benefit from complementary kitchen appliances, including a chimney, hob, OTG, microwave, and RO system.
At Group Satellite, a Mumbai-based real estate firm, a 1BHK apartment priced at around โน54.50 lakh in its Aarambh Avyaan project comes with a payment plan wherein the buyers pay only 10% plus stamp duty for now. Every purchase comes with a 10 gm gold coin and a modular kitchen.
Also Read: Ganesh Chaturthi 2024: Buy now, pay later scheme takes centrestage this festive season in Mumbai real estate market
P Rajendran, chief Sales and marketing officer at Shapoorji Pallonji Real Estate points out that the company, by offering flexibility on payment plans, reduced booking amounts, and special festive sales, aims to give buyers an opportunity to make the most of this season.
Ashwin Sheth Group plans to distribute 10,000 keys, from which four lucky keys will unlock four 2BHK flats. It also plans to offer MG Windsor EVs, Bose Home Theatre Systems, return tickets to Amsterdam, and iPhone 16 units. These offers are for its projects Sheth Avalon in Thane, Montana in Mulund, Sheth Zuri in Thane, and Edmont Aurelia in Kandivali.
Bonito Designs, a home interior design brand backed by HDFC Bank and Lodha Ventures, an Abhinandan Lodha enterprise, is offering benefits worth โน7 crore to new customers. Customers can take advantage of offers that include savings in celebrity design fees of up to โน2.5 lakh, No Cost EMI plans, free upgrade to premium products and an assured gold coin with every booking.
Not all offers translate to a great deal
Real estate experts point out that the festival season offers become relevant only if buyers feel that they are getting a good deal. Others point out that like discounts offered by retail outlets at the end of the season, festive offers in the real estate sector are utilised to clear unsold inventory.
Homebuyers should evaluate festive offers on their intrinsic value. Ask yourself if you really need a gold coin. A family holiday abroad may not make much sense if you would rather stay put and focus on your career for now.
If a homebuyer is being offered a freebie that he already owns or does not need, he can opt for other discounts. For instance, if a developer has offered ACs in two rooms and a hall in a 2BHK apartment, one can instead seek a reduction of a lakh from the total outgo. Buyers should get a fix on how these freebies translate monetarily.
However, a free parking space, waived stamp duty and registration fees and maintenance-free periods do add to your savings, and therefore to the value of the deal. Air conditioners, modular kitchens and furnishing are also expenses you may incur on the property sooner or later, so getting them free may add to the real value, said experts.
While ready-to-move-in properties are safe bets, picking up a property in one of the under-construction projects can also be a good choice provided it is by a reputed developer or if handover is around six months away.
Buyers thinking of buying property for investment purposes should not expect to make immediate capital gains. Besides residential properties, they can also think of investing in leased commercial real estate assets.
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