In NCR, developers are doling out discounts by way of GST and stamp duty/registration charges waivers and some are even topping it up with free car parking and clubhouse membership.
Modi government's slew of measures to boost housing demand is expected to result in housing sales increasing by between 5-7 percent in the festive season, said Anarock Research in a report.
Freebies to attract buyers this festive season starting with Ganesh Chaturthi range from plain vanilla price reductions, money-saving opportunities like waived stamp duty and registration charges, or 'white goods' like furnishing and household electronics, it said.
The previously popular subvention schemes have been eliminated by the NHB.
The most popular festive offers in MMR is waiving off of GST and stamp duty and registration charges. In NCR, such developers are doling out discounts by way of GST and stamp duty/registration charges waivers and some are even topping it up with free car parking, clubhouse membership and miscellaneous gifts like modular kitchens, the report said.
The policy-induced impetus will primarily attract end-users - buyers looking to purchase homes for their personal use. However, it is no secret that end-user sales alone will not suffice to revive an industry which has historically depended on healthy investor activity to drive sales momentum, said Anuj Puri, Chairman – ANAROCK Property Consultants.
With this in mind, the government is expected to come up with additional exclusive measures for the real estate sector – expected anytime soon – then it could boost the confidence of investors too, he said.
Traditionally, the festive quarter fares better than the previous quarters of the year when it comes to housing sales - the combination of religious sentiment and festive deals and freebies is a potent mix during this part of the year, the report noted.
For instance, the fourth quarter of 2015 saw 70,000 homes sold in the seven major cities. However, as tempting as it was for developers to believe that this was an unshakeable performance standard, it was certainly shaken just a year later. After demonetisation (DeMo) was announced in this critical quarter in 2016, housing sales halved to 32,100 units.
The implementation of RERA in early 2017 set the stage for another about-turn, with the last quarter of 2017 witnessing a 44 percent surge in housing sales. This trend was fortified in the festive season quarter of the fourth quarter of 2018 with 69,900 units sold in the period, the report said.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
