Backdrop
The festive season, the time period to which almost all sectors look forward to giving that boost to their sales. Out of all, the Real estate market is the most dependent on it. You see India is more of an emotional market, here buys happen more on the emotional front rather than financial. And banks know this, they partner with top e-commerce websites and throw in all the tactics they have such as - no-cost EMI, cashback, upfront discounts. Recently the home loan interest rates have also fallen to a record low with Kotak bank offering the lowest at 6.5%, and BOB highest at 6.75%, these are by all means really attractive rates. Let's see how real estate developers are reacting to these external factors.
The Article
As the above-mentioned factors are a perfect recipe for an action-packed season, developers have made sure they leave no stone unturned. From offering freebies like fully-furnished homes, straight-up discounts, easy payment options, lucky draws with cars as gifts..!!!!! Apart from freebies marketing tactics like rebranding the old project and launching new campaigns for same.
Supertech group mainly based in Noida recently advertised for its Spira project in Sec 94, wherein the developer offering fully furnished apartments for INR 3.82 crore which was earlier priced at INR 5.53 crore, per sqft discount comes to INR 5,000 (that's freakin crazy..!!!!) well the point here is not to advertise the project but to highlight the fact that developer can go to such levels to sell the inventory.
The previous year after the first wave of covid, stamp duty concession, especially from Maharashtra and Karnataka government, seemed to be the driver for the stupendous sale of units this year the rage is all about rebranding and discounts. According to Samantak Das, Chief Economist and Head Research & REIS, India, JLL "Affordable synergies have aligned well in this festive season and with homeownership high on the agenda for people across age and income groups, the market is primed for a likely 30-35 percent sales uptick in H2 of 2021 compared to H1" - as stated in an article by moneycontrol.
As for the home buyer these all factors will be enough to prepone their plans of buying their dream home so as to not fall into the FOMO (fear of missing out) effect.
Conclusion
The real estate market in India is struggling no doubt on that when pandemic struck, the immediate worry was of the worker migrating to their home town and developers facing a shortage of workers. But when they were available projects were being built customers worried about getting infected and hence refrained from buying properties. But now when finally everything seems to be on track, what remains to see how neatly they (developers) can pull this off.
Until then, Stay Safe, Stay Updated.
The above article is written by the author who is a former Analyst with a Real estate developer based in Mumbai.
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Disclaimer - Above information is to spread financial literacy. We are not SEBI registered financial advisors, kindly consult your financial advisor before making any investment decision.
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