Realtors woo buyers with discounts to boost sales amid pandemic. Good time to buy?
For those looking to buy property, this seems like a good time as interest rates are low and developers are showering buyers with discounts and freebies. However, in view of economic uncertainty and job losses, many have postponed their decision to buy homes.
In order to lure buyers at a time when real estate like almost all other sectors is reeling under the pressure of recession, real estate developers are offering freebies and discounts such as free parking space, easy flexible payment plans, foreign trips ahead of the festive season.
“We are likely to see improved sales velocity during this festive season when compared to prior months of this financial sale. We have seen significant growth in sales during the past month especially on the occasion of Ganesh Chathurthi. A number of developers rolled out festive season offers that may help drive incremental sales. Lower interest rates should also help drive sales. This is an indicator that the market has bottomed-up and more buyers are coming back to the market,” Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com told ET Now digital.
Sales pick up during the festive season each year but the demand scenario is muted this year owing to the recession which started in June quarter and an economic slowdown which is three years in making now.
Realtors offer discounts, freebies
Realty firm Bhutani Infra is offering payment plan of 50:25:25 with an annual return of three years on all their projects.
“Real estate asset has come out strong in these tough times and we want to iron out every possible hindrance from the path of buyers. We are sure that this season would be phenomenal as we have witnessed an increased number of queries from end-users. The enquiry to sales ratio is already very encouraging and it is likely to improve further,” Ashish Bhutani, MD, Bhutani Infra told ET Now Digital.
In order to address buyers’ fear of investing in under-construction projects, some realtors are even assuring protection for buyers’ money. Bullmen Realty India, a Noida headquartered consultancy firm will protect the buyers’ funds and double their stuck amount in case of non- delivery of projects by developers.
“Through this scheme, our idea is to protect the interest of property buyers and promote positive sentiment in the real estate sector. The scheme will be available for those buyers who book projects through us in select projects of some of the reputed developers,” said Ankush Jain, MD, Bullmen Realty India.
Ghaziabad-based Gaur Developers is luring buyers with flexible payment plans for its commercial project Gaur World SmartStreet and giving out freebies such as laptops, washing machines, mobile phones, microwave, video doorbells, refrigerator, chimney, iron machine etc for its residential projects Gaurs Siddhartham and Gaur City.
“We have come up with an offer that will make owning a commercial property an easy affair. Under this scheme, we are offering an easy payment plan with 10 percent down payment within 30 days, 40 per cent with one year, and the rest 50 per cent at the time of delivery,” said Manoj Gaur, MD, Gaurs Group & Chairman.
The free gifts include laptop, washing machine, mobile phone, microwave, video doorbell, refrigerator, chimney, iron machine, and a hob.” said Manoj Gaur, MD, Gaurs Group & Chairman, Affordable Housing Committee, CREDAI (National).
Similarly, Noida-based Ajnara India is also offering flexible payment plans for potential buyers.
Developers registered with the National Real Estate Development Council (Naredco) in Maharashtra are offering to pay stamp duty charges on behalf of the customers. In a significant leg-up to the pandemic-hit market, the stamp duty in Maharashtra was reduced from 5% to 2% till December 31 as the government believes that the move will spur fence-sitting potential real-estate investors to buy. The duty will be lowered from the existing 5% to 2% starting September 1 till December 31 and will be pegged at 3% from January 1 till March 31, 2021. Other states are expected to follow the move.
Goldman Sachs said the move is positive for the sale of ready inventory as it reduces the price of ready units. The brokerage said stamp duty cuts combined with low-interest rates could rekindle demand in the sector. However, it may not be enough for an under-construction property as the GST rate would still be applicable.
Other developers are offering flexible payment options like no EMIs till possession or charging only 10% of amount until possession.
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