Festival season has always been the favorite of every person, it is filled with excitement, festive offers, and happiness. But this year it is not the same as always for everyone. As the festival season draws close, the real estate developer expects a more successful last quarter of the year 2020.
There is no doubt that the national lockdown of Covid-19, which started in March, hardly impacted the sector with essentially no sales. However, there was a major turnaround and sales increased from July to September with the country relieving restrictions in phases. Now when the biggest festival of the Country ‘Diwali’ is around the corner, real estate developers are all set to approach the customers with appealing Diwali offers and schemes such as discounts, payment schemes, free maintenance, or other freebies.
The marketing strategy behind high sales in this season is that ‘Almost 70 percent of their full-year revenues come in the third quarter of the financial year alone for most companies. Sales output has always been 30 percent higher during the festive quarter from October to December, relative to sales during non-festive quarters says Prashin Jhobalia, vice-president, House of Hiranandani.
This pandemic has made every person realize the importance of having your own home. The coming season can also turn out to be a great opportunity to invest in their property for Indian citizens as well as for NRIs.
As you know that Interest rates have dropped, and there is a large supply of affordable and middle-income housing across top cities such as Tricity. Homebuyers today tend to go in for a ready-to-move property and demand in this sector might be impressive this season’s festive offers. Some buyers may also be contemplating a pandemic upgrade involving the need for large and wider homes to work-from-home.
Earlier, builders would offer free tickets to exotic locations overseas such as Europe, free parking, and similar freebies that would attract buyers. But now the time has changed and so offer. In the current situation, consumers prefer healthy cash discounts and flexible payment plans, free maintenance, etc.
With the scheme of government ‘Housing for All’ or ‘Pradhan Mantri Awas Yojana (PMAY)’ the realty market of India has seen a positive shift in demand. With the low rate of interest on home loans and real estate festive offers by developers, it is expected that the real estate market will see a rise.
SBP Group believes that there is nothing much greater than to celebrate a fiesta in your own home. Moreover, homebuyers who want to buy a house this Diwali should know that the market today is a market for buyers. Not only are builders providing offers and discounts, but consumers are also in a great position to negotiate hard and make substantial profits.
Reasons To Buy a Property During The Festive Season 2020
If you are considering whether or not to invest money in a property following reasons can help you in making a sound decision:
- The market is right now more consumer-oriented.
- The repo rate is at its lowest @4%.
- Monetary estimates suggest that this could be an optimal time for property investment. Home loans are available at interest rates below 7 % per annum, and banks are also providing certain waivers to reduce additional home loan expenditures.
- The real estate festive offers result in additional benefits to the buyer.
- Homebuyers should also acknowledge that the market has undergone a recession. The vast unsold inventory and the current pandemic have pressured businesses not to raise their prices. Prices are trading sideways as a result. With fewer releases, for homebuyers eager to buy, the market is primed.
Tip For Buyers: During the festive season, numerous attractive deals and festive offers are being given by developers to boost demand. During this time, many studies and previous experiences have shown that there is often a rise in the number of inquiries. It helps if sufficient research is carried out on the developer, offer price, previous projects delivered, deadlines met and product quality, without being carried away by unreasonable discounts alone. Always make sure that the developer is RERA registered or not.
Why Consumers Are Attracted To These New Festival Offers?
‘A free parking space, waived stamp duty and registration fees and free periods of maintenance add to the savings, and hence to the value of the contract. Air conditioners, modular kitchens, and furnishings are all expenses that can be incurred sooner or later on the house, so having them free now adds real value’ says a real estate consultant.
Offers Provided by Developers: Consumers can expect good cashback offers or cash discounts on per square foot price. Along with that, the most alluring schemes by developers are to provide freebies such as air conditioners, TV sets, home décor items, modular kitchen, zero maintenance, and free club membership, gold coins, and smartphones.
A GST and stamp duty waiver is also provided by some developers. At present, GST is paid for residential units outside of the affordable housing segment at five percent. The customer has to pay stamp duty and registration charges at the time of registration. While stamp duty ranges from 3-10 percent depending on the state, on property worth over Rs 25 lakh, registration charges work out to 1.1 percent.
Even after all these offers and schemes, the main question which is ahead of all the people especially real estate developers, brokers, brokerage firms, etc. is:
How Will The Real Estate Industry Recover From the Pandemic of the Coronavirus?
Some experts are of opinion that the government needs to work closely with and address key issues in the real estate sector. “It is going to help revive the economy. In terms of decreased interest and GST rates, lower taxes on construction / raw materials, etc., realty players seek government help so that they can pass on the benefits to home buyers and thus raise consumer sentiments. At lower interest rates, developers still need financing, so that the total cost of the product stays low.
Overall, it is expected that this season will be the boost the real estate sector. For any more information, you can connect with us on our website www.sbpgroup.in.
