The 2023 festive season is seeing a notable shift in the real estate sector as developers are emphasizing financial and flexi-payment schemes over the more traditional freebies, such as gold coins and modular kitchens. In contrast to previous years, the current trend reflects the robust demand in the market, with fewer freebies on offer.
Real estate experts have noted that this shift is particularly evident among branded developers, who may opt to refrain from providing offers due to the healthy demand they are experiencing.
Anshuman Magazine, the Chairman and CEO of CBRE for India, South-East Asia, the Middle East, and Africa, pointed out that this festive season is expected to witness a significant number of first-time homebuyers entering the market. He explained, “An increasing number of fence-sitters are likely to finalize their decisions based on the enticing festive season offers and discounts extended by developers. The premium and luxury real estate segments, particularly those in the range of Rs 2-4 crore and above, are set to become highly sought-after investment choices, especially among high net-worth individuals (HNIs) and non-resident Indians (NRIs) looking to secure their investments amidst the prevailing global macro-economic uncertainties.”
Historical Trends
In the pre-Covid era, festive offers typically included subvention schemes and freebies like gold coins and modular kitchens. However, in the wake of the Covid-19 pandemic in 2020 and 2021, developers began offering stamp duty or GST waivers, in addition to freebies. In the year 2022, freebies dominated the offerings, including gold coins, phones, and modular kitchens. Interestingly, many projects with strong sales hardly featured any offers. The current year is expected to follow a similar trend, with fewer festive offers due to high demand. Major launches by prominent and branded developers are already experiencing healthy sales. Despite the reduction in festive offers, this period is considered an opportune time to buy, as prices are poised to rise further.
According to a recent report by JLL, residential sales in the top seven cities during the first nine months of 2023 reached 91 percent of last year’s sales, with expectations of surpassing 215,000 units by year-end. Favorable interest rates and the festive season sentiment are predicted to drive sales to new heights. Additionally, a robust supply pipeline is expected to bolster the market, with strategic land acquisitions and growth corridor developments. This indicates the real estate market’s resilience and its potential for growth, particularly in the mid and premium segments.
Festive Offers in 2023
Several developers are offering innovative financial incentives and flexi-payment plans to attract homebuyers during this festive season. Ashar Group, engaged in the redevelopment of Bollywood legend Dilip Kumar’s bungalow, is offering customers a flexible payment plan where they can pay just 30 percent of the total amount in installments. The company also provides a zero stamp duty scheme and a special payment plan.
Listed developer MICL stands by the principle that “quality doesn’t need offers.”
Prestige Group introduces a 25:75 flexi payment plan for its projects in Mangalore and Goa, where buyers can pay 25 percent upfront and the remaining amount upon possession. They also offer a 50:50 payment plan on another project in Hyderabad.
BCD Group in Bengaluru is offering assured rentals for two years at 7 percent for homebuyers.
In Delhi-NCR, Experion Developers offer discounts worth up to Rs 59.99 lakh and free home appliances worth Rs 9.99 lakh for immediate bookings of premium properties. Apartment and penthouse buyers can receive a 10-gram gold coin with each booking.
The Gaurs Group provides two years of free car parking and maintenance on bookings for its commercial project, Gaur City Centre, in Noida Extension. For another commercial project, Gaur Aerocity Mall in Ghaziabad, buyers can obtain a 20-gram gold coin along with two years of free maintenance. For Gaur World Smart Street, they are offering a free registry, GST-free BSP, and three years of free maintenance.
What Homebuyers Should Consider
Homebuyers looking to make a purchase this Navratri should be aware that the current market favors them. As demand remains strong and the festive season unfolds, developers are willing to go the extra mile to attract buyers. However, it’s important for buyers to assess the value of the offers and freebies they are being presented with. If a freebie is something they already own or don’t need, it might be more advantageous to negotiate for other discounts. For instance, if a developer offers air conditioners in a 2BHK apartment, but the buyer already has them, they could request a reduction in the overall price.
In this buyer’s market, bargaining is encouraged before finalizing any deal. With a wide range of offerings available, it’s vital for homebuyers to understand the monetary value of the incentives presented to make the most informed decisions.
In conclusion, the real estate sector is witnessing a shift in festive offers for 2023, with developers focusing on financial incentives and flexible payment plans rather than traditional freebies. The strong demand in the market has resulted in fewer offerings this year, particularly from branded developers. As the market remains favorable for buyers, those looking to purchase a home should carefully evaluate the offers and consider negotiating for discounts or incentives that hold real value for them. This festive season provides an excellent opportunity for homebuyers to make well-informed decisions and secure their investments.
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