Demand for budget housing soars in Chennai

Chennai

Chennai’s developers are upbeat as demand for budget housing is reaching a new high. If the recent project launches and instant absorption in specified time schedule is any indication, then property developers may have to focus more on vital factors like location, product mix and pricing in future projects to ensure quick exit route.

Akshaya’s launch of the much publicised project ‘TODAY’, on Old Mahabalipuram Road (IT Corridor) in Thaiyur, drew overwhelming response from investors across the city. Over 1 million sq ft area covering 1021 residential units had translated into a net revenue of Rs 360 crore at Rs 2850 per sqft and advance booking of Rs 21 crore in a matter of just three days. Out of 2134 units, over 50 per cent of the inventory was cobbled up. The current sale price is Rs 3,000 per sq ft for an extended day which is expected to be revised soon. An investor can acquire 612 sq ft 2 BHK unit at Rs 17.44 lakh.

In yet another instance, Dugar Housing has launched 1 BHK – 3.5 BHK units in Ambattur at a price of Rs 3,450 per sq ft when competing products were quoted at Rs 4,500 – Rs 5,000 per sq ft in Ambattur. Though the offer was extended for a limited period, 90 per cent of the units out of 160 apartments launched were sold out in a matter of days. Here again product pricing ranges from Rs 25 lakh – Rs 80 lakh. Location, pricing and amenities played a major role in driving the sales, according to industry sources.

On the villa front, it is again the product, location and pricing that tilted the balance in favour of the developer who conceived the idea appropriately and understood the pulse of the market. Casa Grande had launched villa projects in the price range of Rs 1.05 crore – Rs 1.6 crore. Apart from the land area of 1500 sq ft in a strategic location like Sholinganallur junction and Thalambur main road, 4 BHK units were offered with 2325 sq ft built up area. If the product and location are right, then irrespective of the pricing, the acceptance level would be instant, say market sources.

The recent launches and successful marketing had taught several lessons for the city’s developers to revise their future strategy while offering the product-mix.

V Nagarajan, Property Consultant

For the original post visit: http://content.magicbricks.com/demand-for-budget-housing-soars-in-chennai/

Get freebies from your builder

Property developers across the country are offering some freebies and discounts to attract customers. Is it the right time to buy property, specially when real estate developers are offering discounts?

Real estate market appears in some trouble as buyers are either canceling or postponing their property buying plan due to prevailing high interest rate and inflationary pressure. Property developers across the country are offering some freebies and discounts to attract customers. Is it the right time to buy property, specially when real estate developers are offering discounts?

Festive season discount

Festive seasons in India are the best time to buy property, but this year high home loan interest rates added by inflationary pressure made it difficult for buyers to decide. However, discounts offered by developers could help buyers. Buyers need to be cautious, as these discounts come with riders and hidden adjusted costs. Get all possible details about the offer and its time frame, before finalizing the purchase.

Discount on cash

One of the most attractive offering from developers is the cash discount. In these troubled times when bank's lending rates are quite high, these cash discounts could help in compensating price differentials. However, as like several offers this cash discount offer also depends on value of the property and comes with pre-conditions. Check all offer documents and seek all clarifications before reaching the purchase decision.

Freebies

Freebies have always been the most attractive offer for any home buyer. Depending on the price of the home, the builders offer freebies like music system and modular kitchen. Some builders even offer a car or parking space for bigger properties.

Relief from fees

When you buy a home, you have to pay for the registration fees and stamp duty. There are some builders who are offering relaxation in paying the fee. This saves 3% to 5% of your estimated budget.

Negotiator discount

Having a negotiator is a good idea in the festive season because you can then get double discount. The builders offer you direct discounts which are quite handsome. They also provide discounts for some negotiation companies.

Important points

Don’t buy a property in haste just because the builder is providing you some discounts. You have to live with the decision and so you must research on the property before buying it. The location of the property and the quality of the builder are more important than the discount. If you are getting freebies from your builder then make sure that you need it. You surely don’t need a car or an AC if you already have one. Make sure that all the benefits work for you.

Source: indiainfoline.com