Realty: Diwali 2009 offers are meant more for end users

It’s that time of the year when you can feel the festive buzz all around you. And real estate developers are cashing in on the festive mood. They have realised that the consumer is not interested in a drop in basic sale price but more in the total outflow that is incurred towards purchase of the property.

Ravi Saund, marketing head of Sare, a real estate-backed private equity fund developing residential properties, says there is a qualitative shift in Diwali offers across years. “The year 2007 was the height of the real estate boom and developers were riding the crest of the boom. Diwali 2008 saw developers struggling with cash flows and global recession and Diwali offers too were highly watered down. This year the offers are structured to be of more use to the end user.” Sare took advantage of the positive buyer sentiment to launch its Chennai and Gurgaon projects. In addition, it offered a Rs 25,000 festival discount.

According to Raminder Grover, CEO, Homebay Residential, Jones Lang LaSalle Meghraj (JLLM), demand this festive season has been 25% higher than it was last year, when the sector was already in the grip of the slowdown.

Whether this demand is on the back of varied offers or an improvement in the overall sentiment, the fact is that many developers are launching special incentives to appease buyers.

Supertech is offering free LCD screens to customers in some of their projects such as 34 Pavilion in Noida, Emerald Court at Expressway Noida, Czar Suits in Greater Noida and Green Village in Meerut. R K Arora, chairman & MD, Supertech, says they have received a good response from buyers. “In the first phase during the Navratras, we had offered ACs per BHK in some of our projects. The response to the previous festival offer and the current offer (AC+ LCD) has been quite welcoming. Around 70-75 units were sold for all the projects put together.”

Delhi-based real estate developer Omaxe too has announced a special offer where customers can win an LCD TV on every on-the-spot booking of flat in their newly-launched group housing project in Bahadurgarh and Rohtak projects. Both the group housing projects offer a 3BHK house for around Rs 35 lakh.

Vijay Jindal, CMD, SVP Group claims that they have seen a 35% growth in booking with the launch of their festive offers. “We are offering 10-55-35 (30+5). Booking amount is 10%, 55% will be financed by bank whose EMI will be paid by SVP. Then on possession 5% will be paid by the customer and rest 30% will be financed by the bank or financial institution. The response for our scheme has been quite encouraging.”