March 2017 | Back to all Real Estate Articles
Are you seeking a new abode? Fret not, as developers are offering unique customer-friendly schemes and incentives that you can leverage upon to seal the deal, say experts
Attractive freebies, exciting offers and attention grabbing payment plans ¬ are some of the key in centives being offered by the developers in order to entice the home-buyers and make their homesearch easy. Amit Parsuramka, CMO, Omkar Realtors says, “Developers tend to dole out a variety of offers to their potential buyers so that they invest in their respective projects. And these exciting deals are to hook the interest of the buyer and cash in on consumer psychology.“
Experts are of the opinion that the realty market is witnessing an unremitting sluggishness and thus, the need of the hour is to instill confidence in the buyers.“Ever-increasing inventory, funding issues and low sales, are key reasons. It is but natural for real estate developers to offer various schemes to entice the buyers in order to overcome the slack,“ says Vihang Sarnaik, director, Vihang Group.
Interestingly, developers are getting creative with their offers with each passing day. While some are offering early bird bumper prizes on bookings for the first few flats, some are giving away all-expense paid domestic and international tours. Subvention schemes, differential payment plans, discounts on per square feet rate, discounts on premium charges and fully-furnished flats with white goods among others, are some of the many incentives offered by the builders.
Apart from these schemes, developers are also seen offering waivers on floor rise price, stamp duty and registration cost for limited periods. Sometimes, builders also offer to pay the rent. Freebies like free parking, car, fur niture, kitchen cabinet, club membership are also quite popular.
“Some of the very popular schemes in the market are lower EMI home loans and attractive payment plans such as 20:80, 10:90:10, 5:95, etc,“ adds Parsuramka. These are known as subvention schemes, where the home-buyers have to make a payment of a smaller percentage mentioned in the ratio and the remaining would be funded by the bank, after it has approved the home-buyer's eligibility to return the loan. In this case, the EMIs commence on possession or any time-frame that is suggested by the developer. However, registration of the property is compulsory in these cases.
Property consultants mention that these schemes are particularly attractive to endusers and have been quite successful in swinging irresolute buyers towards a purchase commitment. Most projects offer these schemes in the pre-launch or launch stages and they are a good way for developers to raise money for construction. “What buyers need to know while opting for such schemes is that in these, most developers charge higher per square feet (psf ) prices compared to the rates offered in construction-linked payment schemes. This is because the developers need to pay interest to banks and therefore, charge the customers a premium to compensate for this,“ says Ramesh Nair, CEO and country head, JLL India.
Another very popular scheme in the market is guaranteed rentals to buyers, either until possession or post-possession for a good twothree years. “This is a scheme meant to attract investors, who are in the market for incomegenerating assets (which they will not occupy themselves). Only a few builders offer this scheme and it has been noted that the lumpsum amount of 24-36 monthly rentals, is actually a discount that the developers offer their customers. In fact, this is an interesting example of how developers disguise discounts,“ adds Nair.
Buyers invest into a property for security reasons and also because it's the only asset that appreciates. And since most home-buyers make an investment once in their lifetime, they would want their homes to be delivered to them on time and since, that has not been happening lately, the buyers are moving away from the market. “Hence, developers are coming up with exciting offers so that they can lure the buyers back. And this is proving to be a winwin situation for buyers and developers,“ concludes Faiyaz Rangwala, director sales and marketing, Kanakia Spaces.