• Food & Lifestyle
  • Tech
  • Viral
  • Sci-Tech
  • Interview
  • Photos
  • Videos
  • Contact Us
Friday, February 22, 2019
Afternoon Voice
  • Top News
  • City News
    • Ahmedabad
    • Amritsar
    • Bangalore
    • Chandigarh
    • Chennai
    • Delhi
    • Hyderabad
    • Jaipur
    • Kolkata
    • Lucknow
    • Ludhiana
    • Mumbai
    • Nagpur
    • Nashik
    • Pune
    • Thane
  • Nation
    • Andhra Pradesh
    • Bihar
    • Chhattisgarh
    • Delhi & NCR
    • Goa
    • Gujarat
    • Jammu & Kashmir
    • Karnataka
    • Madhya Pradesh
    • Maharashtra
    • Northeast
    • Punjab & Haryana
    • Rajasthan
    • Tamil Nadu
    • Uttar Pradesh
    • West Bengal
    • Other States
  • World
    • Africa
    • Americas
    • Asia
    • Australia
    • Europe
    • Middle East
  • Business
    • Aviation
    • Banking & Finance
    • Budget & Policies
    • Economy
    • Companies
    • Market
    • Auto
    • Startup
    • Property
  • Sports
    • All
    • Badminton
    • Cricket
    • Football
    • Hockey
    • News
    • Others
    • Tennis

    Indo-Pak World Cup issue: CoA to meet on Friday to take a call

    Stiff lower back rules Hardik out of Australia series, Jadeja named replacement

    We want to make history in India, says England skipper Heather Knight

    Team focused on getting direct entry into 2021 World cup: Mithali

    SC appoints former judge DK Jain as first ombudsman in BCCI

    India lose by not playing Pak in WC: Gavaskar urges PM Imran to act

    My focus is to regain fitness ahead of Oly qualification: Pranaav

    ICC bans Irfan Ansari for 10 years from all forms of cricket

    Sanjeev Rajput says Indian shooters have ‘home advantage’ to seal Olympic quota spot

  • Entertainment
    • All
    • Bollywood
    • Hollywood
    • Review

    Naseeruddin Shah to reprise his role in ‘Jaane Bhi Do Yaaro’ sequel?

    How Jackie Shroff, Bachchan helped Vijay Varma shape his character in ‘Gully Boy’

    Kevin Costner, Diane Lane to star in suspense thriller ‘Let Him Go’

    Sonam Kapoor pays heartfelt tribute to Karl Lagerfeld

    Producer Raj Kumar Barjatya passes away

    Chris Hemsworth to play Hulk Hogan in new Netflix film

    Will hand the movie back to the fans: Jason Reitman on his ‘Ghostbuster’ film

    Rajkummar has the sweetest birthday wish for girlfriend Patralekhaa

    Didn’t want it to affect the film: Kriti on #MeToo allegations against Sajid, Nana

  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper
No Result
View All Result
Afternoon Voice
No Result
View All Result

Home > Business > Should You Buy a Home this Festive Season?

Should You Buy a Home this Festive Season?

Afternoon Voice by Afternoon Voice
October 11, 2018
0

The festive season is considered auspicious for property purchase and Indians across many states prefer to make informed property buying decisions during this period. To encash on the increased demand during the festive season, builders, on their part, leave no stone unturned to lure the customers with freebies and discounts. Over the last few years, mounting unsold stock across cities prompted developers to clear their stock and focus more on project completion rather than launch new ones.

 

Festive Season Offers

This year, launches have increased, and many builders have, in fact, been offering schemes, freebies and discounts all year long to attract homebuyers. Some of the prominent offers include cash discounts, flexi-payment plans, no registration or stamp duty fees, no EMIs till possession, free home appliances or gold coins, etc. A lot is up for grabs and it is interesting to note the variations in festive discounts. Cash-starved developers are also coming up with some very innovative and attractive schemes.

RelatedPosts

5% GST on realty favourable for homebuyers, builders

February 21, 2019

Army chief flies in home-grown Tejas, calls it ‘wonderful’

February 21, 2019

If we analyse the trends during the year and previous festive season, customised payment plans and schemes assuring good rental returns were prominent among the incentives.

Positive consumer sentiments backed by various reformatory changes have kept the momentum going in Indian real estate in 2018 with a q-o-q increase in new supply and sales. Considering the growth in supply and sales, the current festive season is more positive for home purchase than the previous year.

 

State of the Housing Market

There is a lot of supply in the market – both in the ready-to-move-in and under-construction categories. As per ANAROCK data, the overall unsold stock across the top 7 cities as on Q2 2018 is 7,00,800 units, denoting a decline of over 10 per cent as against the corresponding period in 2017. Likewise, the resale market is replete with options. In terms of demand, it is returning on a cautious note as buyers are focusing only on completed projects or those in advanced stages of completion, and only by RERA-listed developers in the latter category.

In the under-construction category, GST is an enduring cause for confusion and uncertainty, as is the unwholesome aura of delayed projects which has been plaguing the market in many cities. Investors have more or less evaporated, so developers are unable to offload multiple flats in a go.

End-users are back – but they’re not making impulse buys, are checking every option and negotiating hard. As a result of all these dynamics, price shave either remained stagnant or grown only minimally in some high-demand/low supply areas.

 

New Launches during the Festive Season

Across the country, new launches have started increasing even before the festive season. As per ANAROCK data, nearly 30,840 new units have already been added in mere 2 months (July & August 2018) across the top 7 cities in the country, led by MMR and Bengaluru with nearly 13,570 units and 6,000 new units approx. This supply in just two months is already 400 units more than the entire Q1 2018 new launches across these cities.

Most of the launches we have seen in the recent times are in the affordable housing segment. As per ANAROCK data, out of the total launched units across the top 7 cities during January to August 2018, nearly 39 per cent comprised of the affordable segment (Rs 40 lakh), followed by 34 per cent in the mid segment (Rs 40 lakh – Rs 80 lakh). This is because affordable housing is the highest seller at the moment owing to the various incentives that the Government has extended to budget home developers as well as buyers.

 

Which Offers Make Sense?

On the one hand, some offers can be genuinely rewarding if the customer has picked the right developer and project. On the other, offers can also be misleading – for instance, if a financial scheme is not transparent and/or the buyer does not read and understand the fine print. Also, white goods freebies only make sense if the property itself is of inherent value to the buyer.

Nevertheless, buyers often ignore the fine print of a superficially attractive but inherently worthless offer, or not seek to understand the exact ramifications, in which case the developer can technically not be held responsible as the information was provided but ignored.

If a buyer has selected a desirable property and is getting add-ons like free furnishing, modular kitchens, essential fittings and reserved parking space, these make sense as they are genuine value-additions. Also, waived stamp duty and registration charges result in significant savings.

However, none of these makes sense if the project is in the wrong location or there are other inherent defects such as unreliable utility supply, lack of social infrastructure and insufficient public transport options.

A price discount is the clearest and most decisive incentive that a developer can offer, but a buyer should focus equally on the value obtained and the money saved. However, this brings up the historic aversion of developers to formally announce price drops.

If some developers in a certain locality start announcing rate cuts, other players have little option but to follow suit in order to stay relevant in this highly competitive market. However, this trend is more prominent if a leading developer at the end of the day, relationships matter in the developer community and few, if any, players will be willing to start a price war.

Moreover, developers invest significant capital into land, construction and building permits and need to recover these costs with at least some profit margin. No developer can afford to sell at a loss, and just breaking even is also not a desirable strategy in any business. Therefore, announcing hard discounts is considered the last and least desirable option.

 

Should You Buy a Home this Festive Season?

If one has already made a firm decision to buy a home and identified the right property, it is certainly worth shaking off this paralysis this festive season. However, it is not the offers but the property itself that should lead the decision-making process. The best offers on easy financial structuring and freebies are of no avail if the property itself does not tick all the right boxes.

Buyers should focus on their actual needs in terms of property type, size, location and price point, and avoid the temptation of over-leveraging their budget. If the property checks out on all the most important fronts, one can consider the accompanying offers – again on the basis on actual need, and only after reading the fine print.

 

By Anuj Puri, Chairman – ANAROCK Property Consultants

Tags: Property
Previous Post

Djokovic breezes into quarter-final of Shanghai Masters

Next Post

Police to record statements of witnesses before summoning Nana Patekar

Afternoon Voice

Afternoon Voice

Related Posts

Budget & Policies

5% GST on realty favourable for homebuyers, builders

by Web Team
February 21, 2019
Aviation

Army chief flies in home-grown Tejas, calls it ‘wonderful’

by Web Team
February 21, 2019
Business

Rel Comm asks lenders to release $36.6 mn directly to Ericsson

by Web Team
February 21, 2019
Companies

Nippon Life Insurance to acquire its entire 42.88 per cent stake in RNAM

by Web Team
February 21, 2019
Banking & Finance

IIFL Home Finance, Maha govt sign MoU for building houses under PMAY

by Web Team
February 21, 2019
Business

NIIT Tech partners Microsoft to help clients in ‘cloudification’

by Web Team
February 21, 2019
Business

“Adani Enterprises could win Carmichael mine approval within 2 years”

by Web Team
February 21, 2019
Business

Piramal Enterprises rises 2% as SC exempt Saridon from list of banned FDCs

by Web Team
February 21, 2019
Next Post

Police to record statements of witnesses before summoning Nana Patekar

Metro: Give fair hearing to people objecting tree cutting, HC tells BMC

Two minor cousins drown in canal in Nashik

  • Trending
  • Comments
  • Latest

Ulhasnagar Sindhis drifting away from Hinduism

December 28, 2018

Swami Nithyananda assures No More Blinds!

January 24, 2019

Sex rackets in the name of Friendship club

April 27, 2017

Trolls to true followers triumph Swami Nithyananda

January 24, 2019

Man sets afire 40-year-old woman, her 2 kin; 1 dies

13

21-year-old girl tries to sell kidney to meet demand of her lover, saved

10

Man’s hand chopped off in MP for enquiring about missing cow

10

The silent Hindu resurgence in Kerala

6

World Day of Social Justice

February 22, 2019

Rahul calls Modi ‘prime time minister’, says he continued photoshoot hours after Pulwama attack news

February 22, 2019

3 sentenced to life in prison for gang-raping teen

February 22, 2019

Transfer 7 Pakistani terrorists from Jammu jail to Tihar: J&k appeals SC  

February 22, 2019

Poll

[totalpoll id=”193931″]

ADVERTISEMENT
  • BJP’s double standards exposed on #Article370

    0 shares
    Share 0 Tweet 0
  • Army Major Bisht killed in IED explosion was to tie the knot next month

    0 shares
    Share 0 Tweet 0
  • Dawood gives a portion of his narco-money to Jihadist-Islamist groups — Part II

    0 shares
    Share 0 Tweet 0
  • Swami Nithyananda assures No More Blinds!

    0 shares
    Share 0 Tweet 0
  • Horrible, says Donald Trump on Pulwama attack; sends a message to Pak

    0 shares
    Share 0 Tweet 0
ADVERTISEMENT
Afternoon Voice

Copyright © 2018 Afternoon Voice.

Navigate Site

  • Disclaimer
  • Privacy Policy
  • About Us
  • Contact Us
  • Support Parallel Media

Follow Us

No Result
View All Result
  • Top News
  • City News
    • Ahmedabad
    • Amritsar
    • Bangalore
    • Chandigarh
    • Chennai
    • Delhi
    • Hyderabad
    • Jaipur
    • Kolkata
    • Lucknow
    • Ludhiana
    • Mumbai
    • Nagpur
    • Nashik
    • Pune
    • Thane
  • Nation
    • Andhra Pradesh
    • Bihar
    • Chhattisgarh
    • Delhi & NCR
    • Goa
    • Gujarat
    • Jammu & Kashmir
    • Karnataka
    • Madhya Pradesh
    • Maharashtra
    • Northeast
    • Punjab & Haryana
    • Rajasthan
    • Tamil Nadu
    • Uttar Pradesh
    • West Bengal
    • Other States
  • World
    • Africa
    • Americas
    • Asia
    • Australia
    • Europe
    • Middle East
  • Business
    • Aviation
    • Banking & Finance
    • Budget & Policies
    • Economy
    • Companies
    • Market
    • Auto
    • Startup
    • Property
  • Sports
  • Entertainment
  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper

Copyright © 2018 Afternoon Voice.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.