It’s all about cash, not the refrigerator
You should not expect too many gold coins and white goods as freebies because developers might prefer to give discounts
There were not that many freebies up for grabs in 2011 due to the tightening of liquidity and rise in construction costs. There were some payment plan offerings and a few ‘gifts’ here and there, but that was just about it. This year is no different – but there is a flicker of hope in the realty market with the reemergence of Noida Extension.
Moderate activity, not robust sale, is expected. Developers may also be under pressure to sell their existing stock to generate revenues. This means there might not be too many new launches this season, except in the Noida Extension area and few in the high-end segment in other micro markets.
Freebies geared towards financial discounts
Don’t expect too many freebies as compared to earlier years as developers are under tremendous pressure to maintain their margins in the current scenario of rising input costs and restrained availability of funds. What you could get, however, are financial discounts like complimentary registrations and EMI-free periods, says Anshul Jain, CEO, DTZ India.
Noida Extension to be the game changer
The re-entry of Noida Extension in the realty market will go a long way in uplifting the mood in the otherwise gloomy residential market due to the cost advantage the location has over Gurgaon in NCR.
The USP of Noida Extension has been affordable housing. There was increased activity in this area between 2009 and 2010 due to the launch of residential projects with average per square feet rate of R2000 to R2200.
At this cost, many people thought they could realise their dreams of owning homes and investors saw it as a lucrative opportunity. However, the middle-income homebuyers and investors were hit the hardest when the construction work stopped in the entire Noida Extension area after the land acquisition controversy and the Allahabad High Court’s order in October 2011 to get the Greater Noida Master Plan 2021 approved before commencing any further construction.
In the absence of ‘affordable’ residential projects, all activity in this segment of homebuyers and investors had remained considerably subdued.
“But now, with Noida Extension back on the growth track, the middle income buyers and investors are back in action and scouting for their dream homes here,” adds Jain.
Agrees Shveta Jain, executive director, residential, Cushman & Wakefield India, “the product offerings made in the region are expected to provide lucrative investment opportunities for both endusers and investors during this festive season.”
With the necessary approvals granted and the issue of land acquisition addressed, Noida Extension is expected to drive sales during this festive season. The region has witnessed heightened activity due to the launch of various residential projects, mostly in the affordable segment.
Prominent developers in the region include Amrapali, Stellar, Gaur Infra, and Habitech to name a few. “Although prices are expected to shoot up in Noida Extension in the coming year, they are likely to remain cheaper than Noida and Greater Noida,” adds Jain.
Price correction during this time of the year
Will there be a price correction? Experts point out that the last quarter of the calendar year, which includes the festive season, is typically the most active one.
Also, most non-resident Indians visit India at about this time, so it is likely that developers will not bring their prices down till the last quarter.
The introduction of fresh stock in Noida Extension, especially if it is launched in the price band of R3500 to R4500, can trigger a price correction in other locations of Delhi NCR.
Due to the huge supply that will be introduced, a correction in the secondary market could be likely too. Ghaziabad, however, seems to be better poised as it is predominatly an end-user market, least speculative but with huge density.
Gurgaon may not witness too many new launches this festive season as it is a highly speculative market like Mumbai. It is more of an investor driven market rather than an enduser one.