Now, get custody of flat first, pay for it a year later

The festive season having started with Ganesh Chaturthi Monday, the real estate market is flush with innovative offers. Notable among them is a builder offering to grant possession of homes even before the payment of the full amount.

This offer allows prospective buyers to pay 70 per cent of the cost a year after they have received possession of the apartment.

In a similar vein, another developer has offered to pay the monthly loan instalment for the buyer up to 12 months, in case of an under-construction project.

Following a slack season months, developers are doing whatever it takes to boost sales. A project named Ajmera I-Land in Wadala, with luxurious 4-BHK flats, priced in the range of Rs 6 crore and more, allows its buyers to pay just 10 per cent of the total cost of home while booking the apartment. Buyers can then follow it up paying another 20 per cent of the cost on possession and the balance 70 per cent a year after possession. “With high disposable income, every buyer today wants a better standard of life. We enter a tripartite agreement with the buyer and the bank. The buyer has to pay the balance 70 per cent cost of the apartment only a year after possession. In case, the buyer fails, the bank would have the right to take possession of the flat,” said, Dhaval Ajmera, director, Ajmera Realty.

J.S. Augustine, chief of strategies at Nirmal Lifestyle, said its offer for its under-construction would draw more buyers.

“We are offering to pay the total EMI of buyers for around 12 months for our under construction projects. Thus, a buyer will be more confident about our project. In case we fail to deliver in a stipulated period, we promise to pay the interest amount of the loan till the final possession of the apartment is not given to the buyer."

Experts believe that the real estate sector has a lot of unsold inventory in the luxury segment.

Ashutosh Limaye, national director, JLL, a real estate consultancy, said, "Developers giving offers and discounts to buyers is not a new trend and it is something that we see every year. There are chances the offers and discounts may or may not drive sales.”

According to a survey by real estate consultancy Liases Foras, pan India unsold stock stood at 1.2 billion square feet at the end of April-June 2016 quarter. Delhi and National Capital Region (NCR) tops the unsold inventory chart with 366 million square feet, followed by the Mumbai Metropolitan Region (MMR) with 267 million square feet of unsold inventory.

Tejas Vyas, director, Oyster Group, said, “Offers and discounts are meant to spur the buying decision of a potential home buyer. Discounts and offers are meant to make the business environment buyer-friendly.”

Glut of offers The Maharashtra Chamber of Housing Industry (MCHI), the apex body of developers, has made it mandatory for developers participating in its yearly property exhibition to give offers and discounts to home buyers this festive season. This includes free foreign trips, free gold and car. The move, MCHI, claim is buyer- and business-friendly. The list of discounts and freebies this festive season include: Trips to international destinations, four- and two-wheelers, gold and a stamp duty waiver, among other things.