Builders have come up with cash discounts, offers like gold coins, flexible payment options, foreign holidays, and waiver of stamp duty to woo homebuyers.(HT)
Builders in Mumbai are looking forward to Gudi Padwa, the Maharashtrian new year, and hoping that realty sales pick up around this time.
They have come up with cash discounts, offers like gold coins, flexible payment options, foreign holidays, and waiver of stamp duty to woo homebuyers.
Gudi Padwa, that falls on Tuesday, is considered an auspicious day when people invest in new property. New vehicles are also bought around this time. Post demonetisation, the real estate sector has been battling to stay afloat and Gudi Padwa, realtors feel, could come as a saviour to their falling business.
Oyster Group is doling out 10-20gm of gold to buyers for all its four suburban projects while Dosti Group is offering discounts up to Rs40 lakh for its Wadala project. Ruparel Realty has launched its Kandivali projects with prices starting from Rs70 lakh and buyers will get a new car on every booking. Satyam Developers offers a foreign holiday to buyers of its Navi Mumbai projects. In Mulund, several developers are offering Gudi Padwa discounts.
According to the Maharashtra Chambers of Housing Industry (MCHI), there is renewed interest among the buyers. “They have realised that the prices have stabilised and there will no longer be any reduction. This is the right time to buy considering the various incentives given by the builders,” said Tejas Vyas, chairman, exhibition committee, MCHI and director, Oyster Group.
Before recession set in the realty sector, Gudi Padwa used to see record sales with builders lining up launches. However, in the past few years, buyers have been subdued. Experts said that things are gradually improving, after demonetisation had hit sales.
According to Liases Foras, a real estate research group, this year’s Gudi Padwa will see a marked improvement in the sales. “We are looking at new launches and schemes to lure buyers. We also have builders reducing the size of the apartments and also bearing the burden of EMI’s for buyers,” said Pankaj Kapoor, CEO, Liases Foras.
The past few years have witnessed a slowdown in the realty market as builders jacked prices to unaffordable levels. In addition, the government aggravated matters by hiking premiums and taxes, putting additional burden on the realty sector.
Problems that the real estate sector faces
Unaffordable prices: Builders jacked up prices to exorbitant levels, putting houses out of the buyers’ reach.
Stringent bank loan conditions: Banks imposed stringent conditions to avail loans. In addition, interest rates were increased considerably. However, interest rates are coming down gradually.
Red tapism: Approvals take years and the project costs increase drastically.
Overall slowdown in economy: The last few years has witnessed job losses as well as a hike in the process of essential commodities, thus forcing buyers to postpone their plans.