The festive season in India is traditionally considered very auspicious for wealth creation and property acquisition. It commences from Navratri and extends up to Xmas. Most of the buyers like to wait for the festive seasons as there are lots of discounts, freebies and deals offered in the market to lure potential buyers. Sales usually pick up during the festive season as it is considered as an auspicious period for the new property purchase.
The festive season is one of the most awaited times of the year when buyers look forward to investing in the property market and therefore most of the sales transactions happen during this period. It is believed that close to 25-30 percent of the annual sales of all real estate market is generated during this festive period. Some discounts, freebies and deals make it a win-win situation for both developers and homebuyers. During this period developers offering the best deals and exciting offers get the opportunity to interact with many potential homebuyers across the country.
To cash in on the festive season, lending banks and other financial institutes provide loans to the borrowers on easy terms. The influx of liquidity in the banking system has ensured attractive home loan rates. Moreover, the sentiment in the market has become more positive after the introduction of the repo rate-linked lending rate (RLLR) home loan product by the State Bank Of India and thereafter followed by some other lending banks. Additionally, they also offer attractive options to customers keeping in mind the festive season. All this can lead to usually 20-25 percent more sales than the rest of the year, during the season.
A win-win situation for both developers and homebuyers
Developers try to cash in on the festival fervor by lining up attractive schemes and offer to attract a large number of potential buyers. They make every effort to woo customers during this period as they line up big discounts, freebies, and various payment schemes for buyers. The positive effect of these offers and deals by the builders will hopefully turn fence-sitters into buyers. This certainly helps in the upsurge of the demand for residential property in the market.
This year more innovative offers and schemes are likely to be witnessed in the market for the revival of the housing market, particularly given the mounting unsold stock of property. Developers look at the festive season as an opportunity to increased property buying activities in the market wherein their inventories can be sold in large numbers.
On the other hand, customers see it as an opportunity to buy their dream homes at competitive rates and attractive buying schemes. Even the investors are driven by traditional sentiments and consider it as an ideal opportunity for wealth creation.
Discounts, Freebies, And Deals In The Festive Season
The trend of offering lucrative schemes, discounts and freebies are fast catching up with most of the major builders. Moreover, the special price and other discounts are being offered during the festive period by the developers to attract potential customers. They put out some big hoardings, banners and also full-page colour advertisements in the newspapers to attract home buyers. Besides, various other platforms such as the Internet, mobile marketing, and social networks are being used to attract customers.
Like every festive season, this time too, the real estate market has been showering offers and deals to lure the potential homebuyers. Some developers are offering freebies such as LED TV, iPhone, iPad, Car, Gold coins, and Armani wristwatch, etc. while some others offer a foreign travel package to their prospective customers.
Besides, developers are offering fully or semi-furnished apartments including air conditioners, free modular kitchen, appliances, furniture, car parking, club membership, registry, stamp duty, power backup, chimney, etc. at their respective projects.
Various payment schemes will allow you to buy the property by making only part payments. To attract buyers in the NCR housing market, developers are offering possession-linked payment plans for homebuyers under which buyers can book the units at 30 percent of the property value, the remaining amount can be paid at the time of receiving occupancy certificate and possession. Some developers are also offering better payment plans such as a GST waiver
Here are some tips on discounts, freebies, and offers:
Now, if you are planning to buy a property in this festive season, you need to keep your eyes open and evaluate the deals before finalizing it. Don’t rush for unrealistic festive offers even if the offers may be tempting. While making up your mind about an offer, you must assess the finer details of a discount offer and do your due diligence before opting for them. There’s nothing wrong with availing discounts and freebies but don’t fall for them blindly. Focus on your requirements and try to understand whether you are saving big with the deal.
Free car parking, modular kitchen, maintenance cost, stamp duty, and registration charges waiver, are some of the offers that you should look out for. You will have to estimate the overall cost of the freebies and see how much impact it will make in bringing down the overall cost of the home.
Registration and Stamp Duty: A waiver of registration and stamp duty can reduce overall costs substantially. At the time of registration, the owner has to pay stamp duty as well as registration charges. The calculation of stamp duty varies from state to state while the registration charges and other surcharges range somewhere from 5 percent to 10 percent.
Club membership, parking charges, etc: Water connection, electricity meter installation, power backup, club membership, parking charges are one-time charges and when waived will add to the overall discount.
GST waiver: Some developers in the national capital region have waived the goods and services tax (GST) on the home purchases during the festive season. GST adds a five percent burden on the buyers but it will not apply to them if the project has received the occupancy certificate (OC). Therefore, the builder is not allowed to charge it from the buyers. However, an under-construction project attracts GST and therefore a waiver on it by the builder may be considered.
However, look for the properties that offer a great location, features and amenities, quality of construction, development of the infrastructure at the desired locality, social amenities and, of course, big discounts during the festive season. You must look to invest in projects of the reputed developers with strong execution and financial capabilities. They are better equipped and positioned to comply with new guidelines of RERA. This will give buyers the scope for the price appreciation of their home as well as timely delivery. If the project meets all these parameters, only then offers and freebies make sense. Therefore, you should not base your buying decision solely on the offers and deals during the festive season.