Mohali real estate developers pin hope on last leg of 2020
Lucrative discounts and flexible payment plans are up for grabs this festive seasonUpdated: Oct 23, 2020, 00:46 IST
In a bid to revive the real estate sector after a decade of slowdown compounded by the Covid crisis, developers in the district are offering prospective buyers lucrative discounts and flexible payment plans this festive season. Real estate developers say they expect the last leg of 2020 to be more profitable than the rest of the year put together.
There are around 200 private housing societies in Mohali. The Greater Mohali Area Development Authority (GMADA), which has begun e-auctioning both residential and commercial properties after slashing the reserve price by 10% from October 10 to October 26, is also offering discounts to rope in buyers.
GMADA additional chief administrator Rajesh Dhiman said, “We have slashed our reserve price by 10% and successful bidders making full payment within 60 days will be given an additional 10% discount. We are offering these schemes during the festival season to invigorate the realty sector.”
Of late Mohali (especially peripheral areas such as Zirakpur, Kharar, and New Chandigarh) has become the tricity’s real estate development hub. Thanks to the GMADA-led IT City and Aero City projects, Airport Road too has become an up-and-coming realty destination.
However, builders are optimistic about a quick turnaround as home loan interests are at their lowest in nearly two decades. They foresee a move from rentals to house ownership fuelling the demand.
Builders say buyer queries are coming in and end-users are looking for ready-to-move properties. The ₹20,000 crore fund created by the Centre in June for real estate projects will also help boost the sector. The fund is expected to help complete around 3,50,000 flats and houses stuck in different stages of construction.
Umang Jindal, CEO of the upcoming Homeland Unity Mall in Sector 67, says enquiries and sales from the corporate sector have gone up in the third quarter of the year. “We are offering customised payment plans as per customers’ demand.”
Zirakpur Builders Association president Harish Gupta says, “Developers have suffered considerable losses over the last few months but the sector has picked up momentum. Since the RBI has restricted subvention plans (schemes where the home buyer, banker and the developer make an agreement), builders are now offering flexible plans.”
“Until last year, developers would offer free tickets to exotic destinations abroad, free parking space, modular kitchens, finished bathrooms, wooden flooring and other freebies to attract customers. However, amid the pandemic buyers are preferring discounts and flexible payment plans,” he said.
Before the pandemic spread, banks were offering home loans at over 8% interest . “Now, the interest rates have dropped below 7%. They are expected to fall further, making it cheaper to buy a house. For people living in rented homes in Chandigarh and Panchkula it will make better financial sense to pay home loan EMIs instead of monthly rent. Builders with ready-to-move properties stand to gain most,” Gupta added.
Mohali Jubilee Real Estate Group director Sanyam Dudeja said, “We are offering safe investments with our bank-guarantee offer. We have launched a one-time discount with a lease guarantee.”