Realtors are bringing their inventory into the market at rates significantly lower than other projects, says Sonal Sachdev
Agents are whispering to prospective home buyers that some realtors are keen to off-load a decent chunk of inventory before they close their books. And while the offers in the market stand where they do, there is scope for some rate bargaining with developers behind closed doors. While realtors are hopeful that sentiment could get a boost after the results of the Lok Sabha elections are announced, a definitive pick-up in home sales is seen still some time away.
Some cash-rich developers are bailing out their financially weaker brethren who have good projects in their portfolio. They are cutting deals to buy into such projects at sharp discounts and utilising their marketing machinery to sell off such inventory through attractive offers to home buyers. What they are doing in the process is netting a neat spread on such sales.
But this is really good news for home buyers. What it is doing is bringing inventory, which was stuck earlier, into the market at rates significantly below other big-developer backed projects in the neighbourhood.
A combination of liquidity stress in the realty sector and year-end considerations is proving to be a fertile combination for sprouting attractive deals in the market. Whispers on realty deal-street also point to a possibility of upward revisions in inventory prices post-elections, if all goes well.
You wouldn’t want to base your home buying decision on market whispers, but if you are looking to buy a home, this is a good window for you to explore opportunities.
Besides, it is good to get some home loan-led tax-breaks in the current year, especially for those buying their first homes costing no more than Rs. 40 lakh and taking loans of up to Rs. 25 lakh. They can get an additional deduction of interest from income (Section 80EE) of up to Rs.1 lakh in this fiscal.