Pune: With demand supply mismatch in Pune real estate builders are going all out to woo property buyers. With inventory building up, major real-estate players are resorting to home festival bonanza with discounts and gifts for buyers.
According to real estate research agency, Knight and Frank's India Real Estate Outlook report the new residential launches in the second half (July-December) of 2014 shrunk by nearly 26 per cent compared with the corresponding period in 2013. The sales within the Pune residential market is expected to decrease from 38,800 units in 2013 to 34,870 units in 2014 with a fall of 10 per cent. The market has witnessed a total inventory of 67,500 units.
"Like many other cities in India, Pune's residential real estate market is currently going through a slow phase. The recent budget did not bring any significant sentiment boosters. The city's developers are pulling out? all the stops to interest buyers with their offerings, as is to be expected on a buyer's market. The upcoming Gudi Padwa festive period is expected to bring a positive turn in sentiment, and many of these offers are gared towards harnessing this forward momentum," said Sanjay Bajaj, managing director - Pune, JLL India
For instance city-based builder Darode Jog will begin home festival bonanza 'Exclusive pre-launch (EPL) offers' from March 12. The festival will cover 20 projects spread across the city with a price range varying from Rs 16 lakh to Rs 3 crore. Under the festival buyers will get 10 per cent off on rates that are currently prevalent in market, a special home loan rates of 8 per cent for the first two years, along with Rs 100,000 worth furniture voucher on selected units.
"EPL also offers a very customer friendly 10:70:10:10 home loan facility, where customer can complete the booking formalities by paying just the 10 per cent of the purchase value which will be inclusive of registration fees, stamp duty and VAT also. Subsequent to which the financial institutions will pay 70 per cent at various stages of development. After this the customer will pay 10 per cent and then the financial institution will pay the last 10 per cent payable at the time of possession,” said Anand Jog, director, Darode Jog Properties.
"We expect the sales volume to recover from H2 2015 onwards, after a lull of more than two years. There is enough availability of units in the Pune market. It will take nearly two years to offload the current unsold inventory of 67,500 units,” said Shantanu Mazumder, director, Pune Branch, Knight Frank India.
Darode Jog's are not alone. Recently another city-based developer Kolte-Patil concluded its home festival bonanza called Nest Fest which helped it get good response across properties in the city. As part of the festival they gave away white goods worth Rs 10 lakh, depending on the price of flat.
The three day home buying fest saw around 1,150 homes booked, comprising of housing space of about 1.25 million square feet.
The total value of the inventory booked during the fest was approximately Rs 750 crore. Riding on the success of ‘Nest Fest 2015’, Kolte-Patil Developers also launched first real estate Mobile App fest.
This Mobile App would be the easiest way to connect with Kolte-Patil Developers and will bring all the information about their projects at fingertips of the customers.