It’s raining monsoon offers

Vinod Behl

The monsoon season (June-August) is traditionally a low-key period for the real estate. But this year one is witnessing an unusual marketing and sale activity by the real estate players, especially in the NCR. Riding high on the positive sentiment generated by  reforms like RERA and GST, developers and promoters are making the most of this season by offering discounts and freebies to homebuyers.

This unusual trend is being  reflected in the  ad blitz kicked off  by developers much ahead of the usual festive season sales. More than 18 developers of the NCR region have been running full-page ads in leading newspapers regarding such monsoon offers for buyers. These include DLF, Vipul, Godrej, Experion, Mahagun, ATS, Prateek, Supertech, Mapsko, Central Park etc. Gaurs and ATS groups are running home festivals to woo buyers in Noida and Greater Noida. Tricity, too, is not lagging behind in following this trend as local developers like Sushma Buildtech and Green Lotus group have exclusive monsoon offers this year. This is the first time that we are making special endeavour for buyers in these months, says Amit Mittal, Director Green Lotus group.  

Catching them early

According to Magicbricks Property Index Report, the marketing momentum in the rainy season this year is built on housing sale upswing reported in the  last quarter of FY18, with 66 per cent of the 750 major locations in the country witnessing price stability or price increase over the last financial year. And developers want this sale momentum going without any break till the beginning of the festive season. There has been a thaw in the attitude of the prospective homebuyers as they are now coming forth to finalise deals. The number of sales, thus, has seen an uptick. Leading real estate marketing company, Investor Clinic had record bookings of 4,000 properties in Delhi NCR during last quarter ending June. NCR’s affordable housing player GLS Group, according to its Director, Surinder Singh, has been able to sell 271 units in this season so far in the lean season. The Gaur group has got around 5,000 bookings over the last two quarters. 

Compulsion to reduce inventory

Developers’ compulsion to cut huge inventories has also played a role in this monsoon bonanza. Instead of paying tax to the government on more than one-year-old inventory, the fund-starved developers are preferring to pass on the benefits to buyers and generate cash flow.

Debt-ridden developers  do not have the time and patience to wait till the festive season to push sales. Sudhir Pai, CEO, Magicbricks.com, says, “In a recovering and competitive market, developers do not want to miss any opportunity to acquire customers, season notwithstanding. With extended sale cycles being the new norm now, developers have moved from campaign-based selling to more sustained year-long sales activity”. Sopan Gupta, Principal Partner, Square Yards, adds “Developers and promoters are leveraging rainy season by adopting a flexible marketing approach, without making buyers wait for special occasions like Navratras, Diwali or New Year. We have also devised a marketing strategy to push sales across India and abroad through ‘Square Yards Azadi Tour’, giving homebuyers freedom from rent and brokerage, besides giving many exciting offers”.

Gathering momentum

The active marketing stance of developers and brokers in July this year is helping them prepare a good ground for the festive season ahead. As the marketing activity gains further momentum with higher allocation for ad budget during the festive season, real estate experts expect sales to further pick up. “The market is changing for good and we expect both new launches and sales to grow over the next two quarters, with Mumbai, Pune, Bengaluru and Noida, driving the sales”, sums up Ankur Dhawan, Chief Investment Officer, PropTiger.

— The writer is founder, Ground Real(i)ty Media

Digital thrust

The increasing use of digital platforms by developers and brokers has helped the market to gain buoyancy. Leading property portals like 99acres.com and Magicbricks.com have registered significant growth. Magicbricks’ revenue for the quarter ending June, registered 48 per cent increase on account of robust property transactions. According to brand expert Haresh Moitrale, Founder Director, Brandniti + Design, this sale momentum has a lot to do with marketing communication changing from larger-than-life to more transparent and less gimmick communication, especially after RERA implementation.

What’s on offer

During the monsoons this year, developers in NCR have come up with several offers to woo homebuyers. GST waiver, club membership, free car parking, free power back-up, white goods are all on offer. in its Diwali se Pehle Diwali offer for Gaur City, Gaur Saundarayam and Gaur Siddhartham projects, the developer is offering multiple waivers on GST, club membership, car parking, floor PLC, power back-up installation etc, besides free semi-modular kitchen, AC, TV etc, lease rent and free maintenance for six months. Prateek Group’s offers for furnished AC homes  include no EMI till possession with no charges for IDC, PLC, club membership, car parking and freehold conversion, besides offering free modular kitchen, power back-up, EEC etc. Supertech, is assuring rental from day one, money-back guarantee at the time of possession, besides no EMI till possession. Hawelia Group is offering ‘LED TV’ on every booking at its Valencia Homes & Hawelia Valenova Park  projects at Noida Extension. The group is also offering fully furnished option in a few of its units in Valencia Homes project. In its tie up with India Bulls, the Sushma group is offering buyers 2 per cent booking amount offer with no EMI till possession offer for Joynest ZRK1 and Sushma Crescent projects. “The home loan will now be disbursed on the payment of just 2 per cent amount by the buyers, so the financial burden on a buyer will be less”, says Prateek Mittal, Director of the group. The Green Lotus group is offering white goods/cash discounts for bookings made in the monsoon season through its ‘Green Mahotsav’ offer for its green projects Green Lotus Avenues and Saksham.