Although the recent RBI rate cut and upcoming festival season brought with them high hopes for the Indian real estate sector, it might not be the case after all. Experts are of the view that if the developers do not lower the prices of property significantly, this Diwali may not be a bright one for the sector. And while many builders plan to attract buyers through various new launches, the home buyers are playing shrewd at the moment, hoping and waiting patiently for further property price cuts in the coming five to six months. This expectation of price cut is widespread among home buyers and could be a dampener for the sector.
This sentiment is particularly prevalent amongst salaried home buyers who feel they will end up with a mediocre deal if they hasten towards buying a property this festive season. On the other hand, builders with piled up inventory are planning to give a range of freebies and massive discounts to clear their crammed up inventory. And due to the reluctance on the part of developers to lower prices, there are seven lakh unsold apartments across eight major Indian cities which, according to Knight Frank India, could easily take up to four years to sell off. This stubbornness on the part of builders has made buying a house for Indians next to impossible as affordability is the most important consideration these days. Keeping these factors in mind, unless the builders stash their prices significantly or give very lucrative discount offers, selling a property will be very hard this festive season.
Understanding the present scenario, while many builders are directly making property price cuts, there are others who are being rigid. In such cases, experts opine that the buyers should not readily accept the prices advertised by the developers and bargain hard. Buyers are in a strong position to get massive discounts if they “discuss the purchase across the table”, asserted Ashwinder Raj Singh, CEO, Residential Services at JLL India.
Many developers across the nation have already begun rolling out festive discounts and schemes. Many big names in the sector like DB Realty, Bestech and Supertech are giving hefty discounts like stamp duty and registration charge waiver not just on their high-end projects but also on the affordable ones thereby increasing the customer inquiries. So if this Diwali is to be made a sparkling one for the realty sector, developers must consider lowering their prices to suit the buyer needs.