10 Reasons Why Developers Are Low on Festive Offers
With housing sales gaining momentum in the pre-festive season and sales outstripping supply amidst high demand, this festive season is seeing lesser deals and discounts on homes. Big offers like waivers on club membership fee and parking charges, besides relief on registration fee are missing. So are complimentary foreign trips and expensive goodies like cars. In the name of festive offers many developers have been simply offering gold coins. Torbit Realty outlines key factors responsible for this trend.
1 Demand Outstripping Supply
During the January- September 2023 period, residential sales recorded in top 7 cities at 196220 units was 15-year high and the market surveys had indicated that the housing sales would further go up, surpassing 215000 units by the end of 2023. Particularly, with demand outstripping supply, there’s no need for developers to offer incentives to boost sales.
2 Depleting Unsold Inventory
In the wake of rising demand and robust sales, there has been a significant double-digit drop in unsold housing stock. This has considerably eased pressure on developers to offer big deals and discounts to push sales.
3 New Launches With Luring Amenities
Despite the dearth of ready inventory in the market, there are enough number of new launches offering modern lifestyle homes ( apartments and plotted developments)with best of the amenities to lure homebuyers.
4 Growing Faith in Under-Construction Property
Amidst growing effectiveness of reforms like RERA and IBC and distress funds boosting completion of homes, the faith of the home buyers in under-construction property has gone up.
5 Projects Push by Big branded Developers
Today, there are a large number of projects of big reputed developers available in the market. Home buyers are lapping up these projects as they promise high quality, timely delivery with hardly any development risk.
6 Fear of Missing the Bus
As the property prices have been going up and there is a possibility of interest rates increasing in view of rising inflation amidst geo-political tensions, home seekers are not much bothered about deals and instead they are worried about buying costlier property if they miss the bus now.
7 Investors Pushing Sales
It is no more just an end-users market., With the investors’ share in the overall residential sales rising, developers are no more exclusively dependent on end-users, thereby reducing the need for offering deals to them.
8 Rise of Pre-Launches
Of late there is a growing trend of pre-launches in the market and developers, particularly reputed ones, are able to sell a significant number of units in the project, with no pressure to offer attractive deals to push sales.
9 Rising Returns on Realty Investments.
In the last couple of years residential realty prices have seen big appreciation, especially when equity market has turned risky due to increasing volatility. Due to this home buyers and investors are attracted to this asset class.
10 NRI Investments on Upswing
As the dollar gains strength against rupee, NRIs are increasingly investing in property including homes as they get bang for their buck