Traditional formats of freebies do seem to be changing with times and developers are pushed to explore dynamic forms of offers. Online portals along with few developers are creating online realty festivals offering convenient payment plans, rent-back opportunities, free interior packages, and good interest rates extending beyond the festive period, are a few options offered to buyers to revive market demand.
While developers are offering different types of offers, industry experts are of the opinion that the surge in buying properties during festive months is a thing of the past as the younger generation is looking for informed and best bargains throughout the year, instead of just believing in the auspicious of the season. Last year, the sales had increased by as much as 10-12 percent during the festive season. However, the buyers were still on the fence due to reports of quite a few illegal constructions and delays in projects. This year, things are changing as a RERA-compliant project means that the developer cannot take the buyer for a ride anymore. Policies, such as RERA and GST have instilled a sense of compliance in developers and made things credible. Slowdown and uncertain economic conditions resulted in timid sales in the previous year in Delhi, Mumbai and Bangalore. As RBI (Reserve Bank of India) has lowered the repo rate, there is a decline in the home loan interest rates. An interest subsidy of 4 percent on a Rs 9 lakh loan and 3 percent on Rs 12 lakh loan for the middle-income group and interest subsidy for EWS and lower income group for CSS under PMAY is itself a bonus to the festive offers.
For instance, a Bangalore-based developer, Puravankara, has brought marketing disruption by allowing customers to purchase an apartment and then giving them an option to lease it back after a contracted term of seven years. Buyers have an exclusive option for premature withdrawal from the lease agreement, in case they choose to occupy the apartment or manage the rental process themselves.
Consumers can purchase a ready to occupy apartment from Bengaluru, Chennai, Coimbatore and Kochi and lease it back to Puravankara with a raised rental appreciation of 8 percent every year. To promote the affordable housing segment, DHFL planned to conduct 100 ‘Griha Utsav’, a unique affordable-housing exhibition in tier-2/3 locations across the country this year. So far, 17 such exhibitions have been conducted.
Similarly, Omkar Realtors and Developers in Mumbai is offering interest rate at 4 percent along with a static floor rise for its project at Goregaon. The company has also introduced a flexible payment plan with a booking amount of only Rs 2 lakhs.
Price discounts, gold coins foreign travels and GST-free housing made a very few head turns this festive season as compared to last year. This is because discounts in recent times are linked to failed projects or hiked prices to counter discount. What buyers actually want is a safety mechanism. A third-party audit or a buyback during an uncertain economy can mean something to them. Also, the traditional format of freebies has to change with the evolving needs of the buyers.
Some traditional formats of freebies do seem to be changing with times and developers are pushed to explore dynamic forms of offers. Online portals along with few developers are creating online realty festivals offering convenient payment plans, rent-back opportunities (builder pays the buyer rent), free interior packages, and good interest rates extending beyond the festive period, up to March.
A property’s features, location, quality of construction, the reputation of the developer, developer’s track record of delivery and amenities are prime; freebies and offers are secondary. Consumers prefer RERA accredited developers and opt for broking consultants who are associated with only RERA accredited developers.
The new marketing disruptions that are emerging for the year 2018 are more grounded and realistic.
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