Mumbai: This festive season, real estate developers are again ready with a slew of offers in the hope of boosting sales. But this time, many are going for a different marketing strategy in view of the upcoming real estate regulations.
While the usual freebies, discounts and incentives are around this time too, property advisors and brokers said contrary to previous years, many builders are likely to come up with more “intelligent marketing” and focus on showcasing the key aspects of projects like approval status and completion stage, thanks to the upcoming real estate regulations.
Few of the large developers like Oberoi Realty Ltd and Tata Housing Development Co. are staying away from introducing any special offers for the season, while many others said that they do not plan to release any new inventories during the next three months but rather focus on selling their finished products.
“Compared to last year, markets are slightly better in certain micro markets. Every quarter, sales are happening. During this festive season, unlike the previous years, developers will not only talk about incentives and price discounts, but will be more quality oriented. Lot of developers will talk about location, approval status and completion stage of the projects apart from amenities and social infrastructure around it,” said Vikram Goel, HDFC Realty Ltd, the real estate advisory arm of Housing Development Finance Corp. (HDFC).
Godrej Properties Ltd has lined up with gift vouchers like home furnishings and modular kitchens for some of its key projects. Another Mumbai-based realty firm Rustomjee said the company is offering flexible payment plans for few of its nearly-completed luxury projects in the city where buyers can book an apartment by paying as low as 5% of the total cost.
However, many of the builders in Delhi and National Capital Region (NCR) have already started rolling out gifts ranging from free car parkings, gold coins to giving away two-wheelers on every booking done till the end of the month.
For instance, Noida-based Ajnara India Ltd said it is gifting a Honda Activa Scooter on every booking in its project Ajnara Integrity till 10 October, while others like Ascent Buildtech Pvt. Ltd and SCC Builders are giving special discounts of up to Rs10 lakh on every booking in many of its projects. Delhi-based TDI Infrastructure is giving 15% discount on the basic sale price in two of their township projects in Kundli (Haryana) and Mohali (Punjab). Akshay Taneja, managing director, TDI Group, said both these projects have had slow sales in the past few months because of the slump in the market.
“We are giving away a discount of around Rs.1 lakh for every booking in our project called Sampoornam in Greater Noida and also waiving some of the preferential location charges. Beyond that we are not offering much as special offers for the season but rather focus on delivering the products on time,” said Avneesh Sood, director, Eros Group, a Delhi-based realty firm.
He said around 80% of the project has been sold and the company expects to clear few of the bigger sized units like 3-bedroom apartments which are harder to sell by offering special discounts during the festive season. Around 300 units of such apartments are yet to be sold in the project, he added.
“This year, a lot of the projects launched between 2010 and 2012 have been completed and got a completion certificate. Till last year, people were apprehensive of the completion status and compliances. A lot of those doubts have been cleared and most buyers have also realized that prices cannot go down below the prevalent prices. As compared to last year, we are likely to witness some sales velocity,” said Pankaj Goel, secretary, Confederation of Real Estate Developers’ Associations of India (Credai), NCR.
However, many others believe that for sustainable growth, developers need to work on bringing back the confidence of buyers on a long-term basis. Samantak Das, chief economist and national director of property consultant firm Knight Frank India, said that though expectations are generally high, festive seasons have not been able to boost the market in the last three years.
“For sustainable growth, we need to bring the confidence of buyers and developers should focus on timely delivery as well as correcting the price points. It will take a couple of quarters to regain the confidence of developers,” he said.