Real estate developers in Delhi-NCR region are offering interesting schemes and freebies to woo buyers as the festival is considered to be one of the most auspicious days of the year and people plan to invest in real estate projects.
On the whole, during the festive season between October and December, the environment in the real estate market is upbeat. Experts said that during the festival season almost all developers offer bonanzas owing to stiff competition, which they cannot factor into their cost and which cut into their margins. Therefore, this could be a right time to do a bargain and purchase a house.
Many brokers are cutting prices from seven to 15 per cent across major cities, with the highest portions in Delhi-NCR and Mumbai. In the festival season, most of the developers either cut the price of their product or offer buyers the option of not paying the EMIs of the first two years or till the possession is not given, or hold out other inducements like free modular kitchens, lCD TV sets, gold coins, or foreign junkets.
Similarly in a bid to attract more big-ticket borrowers in metros, SBI and HDFC have cut rates on home loans above Rs 75 lakh on the back of improved liquidity. The move by two of the country’s largest home loan providers will prompt other lenders review their interest rates, Experts said. “This time, the festival season will see more activity and sales. The sentiments are positive; enquiries have gone up substantially,” says Ashutosh limaye, head (research & real estate intelligence service), Jll India.
“Festive season will only strengthen demand .With an increase in demand. We see price appreciation happening in major property markets in Delhi- NCR,” said KV Developers Director, Aman Agrawal. The sector has been battling declining sales and higher inventory for two years is also expecting improvement due better market sentiments and formation of a stable Government at the centre.
Amit Gupta, Managing Director, Orris Infrastructure said, “After swearing in of Modi Government, positive signs are visible. There is no doubt improvement in GDP will leave positive impact of the real estate sector. With the improvement of economy, input cost will go down and projects would be sustainable. It input cost go down, this will also help home buyer to achieve quality product and handsome discount.”
“We are also offering some discount to the customers. It has also been observed that the sales have gone up in last couple of months.” he informed when asked about the discounts on festival season.
Similary Bhasin Group MD, said “It is true that sales and queries both have gone up after Modi Government has injected some good decisions which are positive for real estate. According to the recent survey the GDP has increased which will be good for the entire industries including real estate. adding that we are expecting that sales will further record appreciation by 20 and 30 percent during festive season.
“We are also very optimistic about the coming period because we got a stable Government which is working towards reforming the real estate sector.” he added. The discounts have come aplenty at a time when people tracking the sector are expecting prices to go up.
“Housing prices are expected rise by five to eight per cent in the later part of this year and it might go up by as much as 15 per cent in certain micro markets,” said Samantak Das, chief economist at property tracker Knight Frank India. “Housing prices are expected to go up during the second half of 2014,” he added.
According to the survey by Knight Frank, the market is significantly optimistic about the residential sector, with 62 per cent of the respondents saying that housing prices will rise in the next 6 months against 14 per cent in the previous survey.
More than 80 per cent of the respondents feel that residential project launches and sales volume will improve in the coming six months. “Personally I am against speculations because it creates volatility and lowers volume. However, last a few years have been tough where costs have gone up and sales dipped. So some increase is logical,” CREDAI Chairman lalit Kumar Jain told The Pioneer.