July is not a lean period for the realty sector this year as developers are lining up freebies and discounts for homebuyers.
The monsoon season (June-August) is traditionally a low-key period for the real estate. But this year one is witnessing an unusual marketing and sale activity by the real estate players, especially in the NCR.
This unusual trend is being reflected in the ad blitz kicked off by developers much ahead of the usual festive season sales. More than 18 developers of the NCR region have been running full-page ads in leading newspapers regarding such monsoon offers for buyers like DLF, Vipul, Godrej, Experion, Mahagun, ATS, Prateek, Supertech, Central Park etc, Gaurs and ATS groups are running home festivals to woo buyers in Noida and Greater Noida.
Catching them early
According to Magicbricks Property Index Report, the marketing momentum in the rainy season this year is built on housing sale upswing reported in the last quarter of FY18, with 66 percent of the 750 major locations in the country witnessing price stability or price increase over the last financial year.
NCR’s affordable housing player GLS Group, according to its Director, Surinder Singh, has been able to sell 271 units in this season so far in the lean season.
A compulsion to reduce inventory
Instead of paying tax to the government on more than one-year-old inventory, the fund-starved developers prefer to pass on the benefits to buyers and generate cash flow.
Sudhir Pai, CEO, Magicbricks.com, says, “In a recovering and competitive market, developers do not want to miss any opportunity to acquire customers, season notwithstanding. With extended sale cycles being the new norm now, developers have moved from campaign-based selling to more sustained year-long sales activity”.
The active marketing stance of developers and brokers in July this year is helping them prepare a good ground for the festive season ahead. As the marketing activity gains further momentum with higher allocation for ad budget during the festive season, real estate experts expect sales to further pick up.
Magicbricks’ revenue for the quarter ending June, registered 48 percent increase on account of robust property transactions. According to brand expert Haresh Moitrale, Founder Director, Brandniti + Design, this sale momentum has a lot to do with marketing communication changing from larger-than-life to more transparent and less gimmick communication, especially after RERA implementation.
What’s on offer?
Prateek Group’s offers for furnished AC homes include no EMI till possession with no charges for IDC, PLC, club membership, car parking and freehold conversion, besides offering free modular kitchen, power back-up, EEC etc. in its Diwali se Pehle Diwali offer for Gaur City, Gaur Saundarayam and Gaur Siddhartha projects, the developer is offering multiple waivers on GST, club membership, car parking, floor PLC, power back-up installation etc, besides free semi-modular kitchen, AC, TV etc, lease rent and free maintenance for six months.
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