There are times when a buyer offers a price more than the asking price but still gets outridden by other buyers who offer a higher rate for the property. It is common for a dozen buyers to make offers well over the asking price, especially if the house is located in the right locations. This willingness to overpay for homes in the right locations is because the buyer knows that they can sell it at any point of time. Most times sellers would do nothing to improve homes since they count on demand for that location. The buyers there fore need to do a thorough research before taking a decision. Being the right location with no add on facilities can boomerang when the markets slump. The buyer would then be unhappy about his decision.
Mahindra Lifespace Developers, part of the Mahindra Group has launched yet another affordable housing project in Mumbai. This is the second one in a row, as the earlier project was at Avadi in Chennai. The revenue from these projects will be used to arrive at viable business model to scale up operations, later.
The company is planning to do a third phase in Avadi, where close to 600 units were on offer. The tie ups with finance companies will ensure support to investors whose average income is between Rs. 20000 to Rs. 40000. All the projects by Mahindra are certified by the Green building Council.
Project Marketing experts at Ikia Consulting Services say that the project at Avadi, named ‘Happinest’ has received encouraging responses.
Come festive season and buyers see that the property market is abuzz with freebies and discounts and various schemes, leading the buyer to go deal hunting. This season may see a lot of launches expecting the buyer to lap them up completely. The festival season from October to December sees a greater activity across the cities and this year has recorded the highest sales compared to last 2 years , in this sector.
While brokers are developers give discounts up to 12%, along with other freebies in the form of household electronic and gold, or a free parking space, some developers ask for only 20/30 upfront payment and the rest at the time of delivery, with no installments in between.
While some have implemented very innovative ideas of arranging overseas trips as incentives to channel partners who clock maximum sales, commissions to influence rs and other referral, there are discounts offered on timely payment of EMIs as well. All this, to attract the customer and to convert the inquiries successfully.
Despite the efforts marketing experts at Ikia consulting services feel that it will take another year for the sector to revive, considering that all parameters of the economy will fall place by then. This again will bank on the stability of the market which is directly linked to the economy.
Developers are positive about an upswing in demand and the industry gaining momentum.
Source _ Business Standard
Online shopping is the latest trend that is catching on amongst the educated and busy urban Indians. The new generation of shoppers are not only splurging on clothes, mobiles and house hold good, they are also looking at buying homes and cars online. The agenda is to reduce costs and dealer margins as these costs are essentially part of the price paid on anything that is purchased from showrooms, shops etc and on housing.
The big news is that Real estate companies such as Tata Housing are launching projects online, and have tied up with Snapdeal.com to sell their apartments of their project Tata Value Homes, a unit of Tata Housing. Magicbricks and 99 acres are other online websites that showcases new properties of builders. The response of the buyers to buying homes online from portals is directly proportionate to the trust that the consumers have in the developer brand. Companies are expecting more sales from online platform in 3-5 years.
But real estate being a risk prone business, buyers would avoid buying online unless the developer is well known and reputed. All the information regarding the project needs to be available online, and the option of cancelling a booking as well within a stipulated time.
Pros and cons of buying online:
Pros – Time saving as information can be accessed on line, buyers may get opportunity to buy subsidized housing projects and may also get discounted rates/freebies.
Cons – Lacks personal touch, buyers need to look out for the credibility of the builder, actual view of the house will be missing, has to become popular with the developers/buyers.
The real estate portfolio managers and marketing services experts at Ikia Consulting services are also welcoming the change and feels that the number of buyers online will only increase in the coming days.
Source : The Business Standard
The announcement of the lok sabha elections has influenced the pace of property sales in the state. Another reason for the lull as quoted by realtors is the rising prices and investors must be waiting to see the outcome of the elections to decide on their purchases.
The higher prices quoted for property has a lot to do with the decrease in sales. Affordability is another major factor influencing the decision to buy property. Prices have shot up due to factors like labor costs, taxes etc.
Experts at the Ikia consulting services, tax advisory, are of the opinion that the government should consider giving a tax concession to first time home buyers. In cities where infrastructures like the roads are good, the development of property is spread out evenly. Another concern that came up due to the announcement of elections is that the labor force has fallen short as they have gone back home to vote.
During elections builders and developers do not focus on launching new projects but focus on selling existing inventory. This is to raise money for elections and at times they do sell at prices below market rates. Hence end user may get what they are looking for from resale or secondary markets at bargain prices. Builders may also offer substantial discounts/freebies during this time to benefit the buyers.
Source : The Hindu
While investments in real estate are a wait watch game, Chennai has changed this patter and investors are now investing in the city for quick returns. The main reason is because Chennai is a very conservative city and hence property prices have remained stable and gradually appreciating, depending on the demand. It is this stability that has attracted investors.
The investment costs in Chennai are cheaper compared to other cities, since the builders are absorbing the costs of materials and labor, to keep up with competition. That said, prices may still go up by 10-15 per cent due to high land prices and construction costs. The demand supply factor influences the appreciation of prices, and sectors like IT, automobiles and manufacturing industry trigger surplus money for investment, into this sector.
Well-developed infrastructure within the city contributes to increased prices for land. Also the ongoing Chennai Metro project will also contribute significantly for the appreciation. Proposed Elevated corridor, along OMR, monorail projects are major contributors for another round of appreciation in the near future – says Project Marketing Services Experts at Ikia Consulting Services.