Festive Season Begins; Realty May Bounce Back With Attractive Offers
While the Indian festive spirit has come alive in the real estate market, developers and other stakeholders involved in the direct transaction have come out with alluring deals. The country wide slump due to Goods and Services Tax and demonetisation is expected to fade out as this year most of the developers are going reasonably with their claims of overall discounts and offers. Moreover, with the onset of the Real Estate Regulatory Authority (RERA), states where the authority is active are being speculated to see better sales due to increasing confidence of buyers in the real estate market.
Here's what is in store:
This year, service tax waiver has given way to GST waiver and equated monthly installment (EMI)-free schemes till possession. The subvention schemes which are already available around the year are highlighted with better marketing tactics.
“Customers can avail GST waiver for any new purchase in its ongoing and ready to move in flats across all projects in 50 locations. The company is also offering rental plus EMI free scheme till possession on its flats for any new purchase by the prospective customer,” said RK Arora, Chairman, Supertech.
State-owned, National Building Construction Company (NBCC) is going to launch 1,000 flats in the festival period across the country. "We will be launching 1,000 flats across the country including Delhi-NCR in this festival. The flats will be in the price range of Rs 15 lakh to Rs 1 crore," said Anoop Kumar Mittal, chairman and managing director, NBCC.
Apart from this, modular kitchens to air-conditioners, Apple accessories to international holidays, developers are trying to woo buyers depending upon the ticket size.
Not just developers, banks and non-banking financial institutions have come up with offers with a further cut in interest rate. Though the interest rates are at the lowest, many banks have come out with zero processing fee concepts to compete for bigger shares of home loan. There is an attractive range of home loans for buyers in the market, making it a win-win situation for all.
For instance, Axis Bank has launched a home loan product - Subh Aarambh. Under this scheme, the bank will be waiving off 12 EMIs of home loan under few conditions. ICICI Bank is also offering a cashback of Rs 10,000 on fresh home loan taken of any amount.
Don't fall for freebies
Though the festive season is considered to be the best time to seal a deal because of raining discounts and deals but homebuyers have to be wise while falling for such deals and freebies. Most of the developers offer freebies, items, and accessories to boost their sales during the period but it is the buyers' responsibility to assess the total cost of buying and how the discounted season is bringing the cost down. It is the fact that the average age of homebuyers has gone down from the mid-50s to mid-20s, the choice of freebies and discounts have changed as they are more rational about their needs and have the sense to choose offers which can benefit them.
Tips for buying in festive season
- Do not rush for freebies. Prioritise your requirements.
- Free car parking, modular kitchen, free maintenance cost, stamp duty and registration charges waiver are some of the offers that you should look out for.
- Don't fall for the illusion of festive sales. Properties in a certain market are already available at a discounted price. If the builder is touting the deal as 'limited offer', be aware that post-festivity, the benefits would remain almost same or will be translated into some other offer.
- Understand whether you are really saving big with the deal. The overall cost of the freebie is included in the cost of the home. It is the buyers who need to decide which deal or offer suits them the most.