News: It’s raining offers for residential homes buyers in Bengaluru-23/06/2020
Updated On: Jun 23, 2020
It’s raining offers for residential homes buyers in Bengaluru
Residential property developers have seen an increase in conversion of home sales for ready-to-move-in properties with footfalls up by 40% post lockdown.
BENGALURU: Property prices in Bengaluru are softening with leading builders offering 10% discount on listed prices by bundling different schemes in a bid to kickstart home sales that crashed during the nationwide lockdown. Builders are trying to unload inventory by making enticing offers to homebuyers including discounts in the form of a minimal booking amount that is fully refundable with no cancellation, subventions schemes, price protection offers and rental assurance and EMI holidays of up to 12-18 months. And home buyers who are not opting for such schemes are being offered upfront discount on the sales price. “Post Covid-19, we are witnessing a huge surge in ready-to-move-in larger homes and villas. Builders have understood the need to roll out exclusive offers for the next couple of months. For homebuyers, this is the best time to buy luxury and rent yielding properties since these offers will be available only for a short duration,” said Bhavesh Kothari, founder & CEO of Property First, a luxury property broking firm that operates across Bangalore, Pune and Mumbai. Residential property developers have seen an increase in conversion of home sales for ready-to-move-in properties with footfalls up by 40% post lockdown. "The margins are very thin and it's not possible to offer double digit discounts, but we are trying to make transactions work,” said an executive director of a real estate firm.
According to property brokers, there is demand from serious buyers for ready-to-move-in homes and bridge to luxury homes with pricing between Rs 70 lakhs for Rs 1.5 crore. “They are a lot more choices for buyers as builders want to offload their inventory, ” said Pradeep Joe, chairman, Confederation of Real Estate Associates of India. As per national association of realtors, it is a buyer’s market now with builders willing to sell ready stocks on discount. “The discounting is to meet the client's expectations for faster closures and cash flow mobility,” said Samir Arora, honorary secretary, National Association of Realtors, India. The liquidity crunch, lower sales and dip in footfalls have put pressure on the residential property developers in the country. As per JLL, Bengaluru was the largest contributor among major cities to sales in the first quarter of 2019. In the January-March period of this year, however, the market witnessed the steepest decline of 52% due to the lockdown.
