Expect good house deals this Diwali
Many builders are unwilling to come on record that they will offer price discounts this Diwali, but do admit to offering freebies, reports Lalatendu Mishra and Sandeep Singh.india Updated: Sep 07, 2008 20:55 IST
Builders across the country see the approaching festive season as an opportunity to boost their sales despite the slowdown in the sector. Real estate developers are gearing up to promote sales by offering discounts, freebies and new launches
With the government announcing the payment of two-fifths of the accumulated arrears for central government employees around Diwali, builders are sitting up and taking notice of this chunk of money.
Recently, Delhi-based developer Amrapali Group issued an advertisement in a leading newspaper in Delhi, claiming to offer special package for government employees. The advertisement reads, “convert your arrears into your dream home” — directly targeting the government payout of salary arrears in implementatiing the sixth pay commission recommendations!
With inventory levels piling up and demand shrinking due to rise in interest rates and lack of affordability, property sales have reportedly come down by 50 to 75 per cent since January.
"In case the developers fail to create demand this Diwali, the downturn would continue for a longer period," said Pankaj Jaju, vice president (real estate), Enam Securities.
Several builders in Delhi and Mumbai are planning offers varying from discounted prices to freebies and EMI holidays on property sales.
For instance, Orbit Corporation, a Mumbai-based developer, is offering a 15 per cent price discount on its residential projects in central Mumbai. “We are willing to bring down prices by 15 per cent for bookings in Diwali and it can go up further depending on upfront payment by the buyer,” said Ram Yadav, CFO, Orbit Corporation.
North India-based Ansal API is planning a sequence of project launches in the national capital region, UP, Rajasthan and Punjab in the festive season. The company plans to offer EMI holiday till possession is taken, in the case of some of these projects.
“We will only take the initial booking amount and the EMIs will start after possession,” said a company spokesperson.
Many builders are unwilling to come on record that they will offer price discounts this Diwali, but do admit to offering freebies such as free parking, furnishing and even sharing stamp duty and registration fees.
Sunil Manrti Realty, developing a housing project Goregaon in Mumbai, is offering to bear 50 per cent of the stamp duty cost, “We will soon be offering this and hope for a good response as the benefits are substantial,” said Manish Grover, vice president (sales & marketing).
ERA Landmark, a Delhi-based developer, is offering some freebies with bookings in the festive period that starts with Navratri and ends with Diwali. “We have also lowered the upfront booking amount from 10-15 per cent earlier to five per cent,” disclosed Deepak Aggarwal, chief operating officer, ERA Landmark.
While they plan to bring these deals to you, watch out to make the most of it.