FESTIVAL OF OPTIMISM | zameensantosh's Blog

This festive season, the housing market has no baits like cars, gold coins or holiday packages for buyers, but builders are hopeful of good sales anyway, finds Syed Amir Ali Hashmi

It was raining festive offers this time last year. Cars, holiday packages and gold coins were the carrots offered to buyers for snapping up that flat or that Med-style villa. This year, the baits have disappeared. As the market gears up for Navratra and Diwali, traditionally an auspicious time for property purchase, builders are looking to score decent sales without giving away expensive `return gifts'. The reason: they feel the market is picking up and buyers will now come of their own accord. Real estate players have been hit hard by the slowdown -- the six-month period of October 2008 to March 2009 was a real dampener. Many developers had to reassess the market and keep projects on hold. But now the sector is seeing what is known as cautious optimism. "The residential market is bouncing back," says Manu Garg, MD of Landcraft Developers. "We've seen a very positive response for our project at Raj Nagar Extension, NH 58, and Ghaziabad. We believe that this festive season is going to be a good one for everyone. We plan to definitely offer something then, but the specifics will have to be worked out."

Navin Raheja, chairman of Raheja Developers, looks at this period "as one of those rare moments in the life of people who want to buy property -- at least in northern India". The downturn has been "a long depressing period," but something good has come out of it. "Everything is in place for the real estate sector," says Raheja. "The prices have bottomed out, interest rates are low, and affordable housing is available."

Any special offers for buyers? Raheja replies, "We are coming up with a new project called Raheja `Shilas,' in Sector 109, Gurgaon, near the IGI airport and 2km from Dwarka Phase II. The costs come to Rs 2,775 per sq. ft. (But) with an inaugural discount of Rs 200 per sq. ft, the special festive price is Rs 2,575 per sq. ft. The project is a mix of towers and independent floors. We have 200 apartments in all. There are three towers of G+12 storeys and 20 blocks of independent G+2 floors. We are launching it on the first day of Navratra, a very auspicious period for Hindus."

Strong sentiments

Developers feel that the market sentiments are good.  Reports, they say, indicate that the market is flush with buyers who want property at affordable prices -- and what is needed right now are projects that suit their needs.

RK Mittal, chairman and managing director, CHD Developers, says, "We've already seen the building up of (a) lot of positive momentum in the run-up to the festive season. Our recently launched CHD Lifestyle project at Karnal, comprising over 150 independent floors, was sold out within six weeks. We plan to launch a similar project with a higher product offering in a very short time."

Mittal continues, "The initial market response has been tremendous. The festive season looks highly promising.

"We also have another project, Sri Krishnalok at Vrindavan, Mathura, which comprises one- and two-bedroom flats.

"We're about to announce a special festive promotion, through which customers can expect to benefit by Rs 51,000 to Rs 1 lakh, depending on the type of the flat and payment plan. Here, 1BHK on an 812 sq. ft built-up area is available for Rs 15.5 lakh and 2BHK on a 1,120 sq. ft built-up area for Rs 19.5 lakh."

 A few developers are, however, handing out goodies. RK Arora, chairman and managing director, Supertech Limited, says, "In this festive season, we're coming up with some offers and schemes to help people buy their dream homes. For the Green Village Township in Meerut, we are organizing a lucky draw that will get the winner a 1BHK flat [in the township]. This offer is on till September 18.

"For other projects, such as 34 Pavilion & Emerald Court (Noida), Czar Suites (Greater Noida), Palm Greens (Meerut and Moradabad) and Livingston (Ghaziabad), we're offering air-conditioners to customers -- as many A-Cs as the number of rooms in their flat. It is a festival offer for a limited period, up to September 27."

Courtesy:- HT Estates dt:- 19-09-09