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Real Estate: Discounts And Offers Galore
It’s festive time even for the stagnant real estate market given the interesting offers developers are throwing in to boost sales
Photo Credit : Ritesh Sharma
For home buyers and real estate developers, the festive season – from Navratras to Diwali – is considered auspicious. That is the sole reason that this 45-day period is often loaded with festival-linked offerings including “no EMI until possession” or cash discounts worth lakhs. The objective is very clear: to sell as many housing units as possible. From offers of free homes via lucky draw to amenities like free car parking, free club memberships to free annual maintenance and more are flooding the realty market across metros and large cities.
Take for example, the discounts and offerings made by Gurugram-based Mapsko Group. It is offering ready-to-move-in apartments with free Club membership, one car parking and one year maintenance along with 5 KVA power backup. “We are also offering assured gifts via scratch cards for on-spot booking during festival season. We are also providing three new ready-to-move-in projects at Sector 82 and 83, with offers valid till 31 October,” says Rahul Singla, Director, Mapsko.
Which segment of housing is expected to get a push during this festival season? Singla singles out the ready-to-move-in segment apartments getting the most benefits for the developers and the home buyers this festive season. “It is commonly believed that the Indian festive season induces property purchase solely because religious sentiments are high during this period. Every segment of the real estate will earn profit: with mid segment earning better especially the 2-3 BHK apartments. The ready to move in property will be seen earning extra benefitting under Haryana RERA,” says Singla.
Regarding the big-ticket festive discounts by developers and its impact on sales, several real estate experts had two key things to share. One, there are no free lunches. It means that the cost-benefit analysis is always worked out before any offers are announced. And two, freebies such as gadgets, iPhones, kitchen appliances or cars are also actually not ‘free’ but tend to appeal to the family members including kids, which then leads to purchase-decision more often than others. Anuj Puri, Chairman, Anarock Property, says the buyers should always consider if the offerings add any value to the property or are superficial in nature.
Another Gurugram-based developer M3M is offering units at a reserve price in the range of Rs 4,399-9,550 per sq. ft compared to a market price of Rs 6,200 – 12,550 per sq.ft “Buyers have the opportunity to save over Rs 25 lakhs to Rs 2.3 crore by participating in the bidding campaign, says Pankaj Bansal, Director, M3M Group. To top this, M3M is offering additional benefits such as preferential location charges (PLC) exemption, free car park, free club membership and first year free maintenance among other things. M3M has roped in audit firm Deloitte as the process validator. The projects being ready-to-move in, the buyers also get to save 12 per cent on account of GST. “Prospective buyers can view and select their preferred units to bid for, by paying a nominal registration fee,” says Bansal.
According to Ravish Kapoor, Director, Elan Group, people love to invest during the festive season and want to buy their dream house too. “That’s why we have brought many attractive prizes for all the buyers who want to own a house. These offers include gold coins, luxury cruise, iPhone and mid- segment cars,” says Kapoor.
Another Gurugram-based developer, the BDI Group is offering a house by paying only one rupee through a lucky draw, the process for which started on 10 September. “This festive season we are offering freebies to our customers along with an assured gift which will be given to a lucky buyer through a lucky draw,” says Ssumit Berry, MD, BDI Group. The draw is scheduled to take place in November. Some developers are offering various car brands, gold coins, LED television sets and refrigerators, among other gift items, at the time of booking.
Parveen Jain, CMD, Tulip Infratech, says the firm is proposing to offer around 10 per cent discount on list price of 4 BHK and 3 BHK apartments of the Tulip Violet group housing project for the full month in the festive season starting from Navratris till October. “The buyers should grab this opportunity which is going to be a profitable deal for them,” says Jain.
Like every year, the objective behind festive discounts is to sell at least 25-30 per cent of the overall stock of ready-to-move-in housing units. In the same festive period, developers, for the last 2-3 years, have managed to meet the target. But this year has been a bit different. Demonetisation followed by the roll out of Real Estate Regulatory Act have managed to dent the sales for a good part of the year. Therefore, any sales this festive season means a lot more to the developers who are hoping to book as many units as possible.