Tag Archives: MCHI-CREDAI Property Show

Time for festive deals as market flooded with offers

Posted on by Track2Realty

By: Ravi Sinha

MCHI-CREDAI Property Show, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty Exclusive: The festivities around Navratra and Diwali are known to cheer up the sentiments of the property market. Reflection is always seen both in terms of upbeat mood of developers, as more launches are planned around this time, and the home buyers, as most of the bookings take place during this time. However, on the eve of Navratra this year, the focus is on selling more and more out of the piling inventory and hence there are comparatively less launches yet the market is flooded with tempting offer for the buyers.

The developers believe with the customized marketing for the target buyers the festivals will be the beginning of the turnaround of Mumbai real estate, which has been sluggish for some time due to macro-economic issues, ranging from overall slowdown to high interest rates. And hence, right from an offer to book and save Rs 2-12 lakh to no brokerage fees and free 100 gm gold coins with purchase of an apartment to free registration and stamp duty worth lakhs of rupees, the marketing packaging is also getting realistic.

The question is whether such festive deals are really going to change the market sentiments. Analysts believe if nothing else at least there seem to be a visible change in the sentiments, one of the key catalysts to make property purchase.  After all, they maintain, the developers have also done their home work before flooding the market with festive offers. Dealing with inventory is a challenge that they hope to meet during the festivals.

Manju Yagnik, Vice Chairperson, Nahar Group agrees that there is a lot of inventory with the developers over the last two years which they will open up in this festive season. She suggests buyers should avail this opportunity to strike a good deal with the developer. Once the buyer has identified the property based on the amenities and infrastructure, he should do a market study of the location/area and then negotiate with the developer to get a good deal.

“There cannot be a fixed rate for negotiation as it will depend on the demand and supply in the area. The buyers today are aware about the markets as well as their needs. Therefore, one should not just fall for flattering offers and discounts but analyze before taking a decision. Festival seasons do hold a lot of significance to the buyers. The property rates are at the lowest currently. With the rise in inflation it does not look feasible for the property rates to come down and a developer will not sell a property lower than its cost price. Therefore, the buyer should go ahead and invest in property rather than waiting for a fall in the prices,” says Yagnik.

As against the perception that there would be a few property launches this festive season, developers are nevertheless gearing up for more launches though it is much less compared to last few years. Diipesh Bhagtani, Executive Director, Jaycee Homes, says Navratra and Diwali are two big and auspicious festivals in India, that see the start of all good and important tasks and purchases. This season therefore will bring some turnaround in the market.

“Yes, there are a lot of projects scheduled to be launched in the coming season. Developers have their sales strategy in place for festive season and every year inventories are consumed during this period. The sales are relatively higher during this period. These strategies are decided based on the market conditions prevailing prior to the festive season and hence fall in sync with present and future market conditions that are forecasted,” says Bhagtani.

Anshuman Magazine, CMD of CBRE South Asia, on the contrary, believes traditionally this annual festive season has been viewed as being auspicious by home buyers in India to invest in properties. The period used to coincide with yearly bonuses for the middle-income salaried class too. But with a despondent job market, rising inflation and decreasing levels of affordability, the festive period this year does not seem likely to bring in much cheer to the property market.

“Subdued demand levels have, in fact, even led to price corrections in prime residential markets—most markets of Delhi NCR, for example, have seen price falls in the range of around 9–12% in H1 2013. This demand stagnation is likely to continue into the festival season too, considerably dampening the likelihood of any substantial investment opportunities in the property market. A silver lining against this somber backdrop, however, seems to be an increasing interest from non-resident Indians (NRIs) in purchasing property in India to leverage the depreciating rupee,” says Magazine.

Another primary reason for choosing to buy a house around the festive time is that festival periods don’t only bring attractive offers but also means choosing from a plethora of property options. Keeping in mind all the factors and also the demand-supply gap in Mumbai, it is expected that festive season would substantially increase transactions this year.

Well, the sluggish market may give indications of heading southwards on the eve of Navratra, but the realtors seem to defy the trend with their optimism. If that optimism translates into actual sales, it may lead to the recovery of the realty market which in the last couple of years has not inspired confidence, thanks to constant repo rate hike, land acquisition issues and overall crisis of confidence in collective consciousness of buyers.

Realty evaluating trial & error marketing format-I

Posted on by Track2Realty

MCHI-CREDAI Property Show, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty Exclusive: With inventory piling up, interest on debt burden squeezing, all tried & tested marketing mantra failing flat and festive season hardly escalating sales drive; the realtors have suddenly woken up to the reality that their marketing format needs a makeover, if not completely to be thrown out of the window.

Track2Realty observes that while developers are in the process of taking the learning from trial & error of last few years, the year ahead will see marketing being evaluated on attracting more of end-users than investors.

Come festivals and it seems the Indian real estate over the years has just changed the dateline of the last festive season. Some developers line up with repetitive freebies such as home furnishings and gold coins, while many others offer cash discounts in a bid to push sales that have slowed down on a year-on-year basis.

However, with the increasing exit of investors in the market tried & tested formula of developers seems to be turning out as trial for error with enough learning for the sector. Hence, most of the real estate companies are now being forced to evaluate their marketing formats to touch base with the end-users since inventory has become a liability for many, especially small and mid-size developers.

Focus has suddenly turned on the inventory rather than new launches. Buyers in the market who are mostly end-users are in no mood to go for the new launches, even if the offer promises discounts, add on or foreign trip in exchange. Many of the developers, it seems, are evaluating their marketing format to take the corrective measures.

Those with the proven timely execution capabilities are experimenting with the 20:80 scheme to beat the slowdown and invoke confidence in the psyche of the buyers. The scheme, also known as the ‘subvention scheme’, is emerging as a popular marketing tool, as the buyer has to pay only 20 per cent upfront, while the remaining 80 per cent is paid at the time of possession. Others are just clueless as to which marketing format will change the project’s fortunes.

Does it mean that the tried and tested marketing format over the years has failed? Shajai Jacob, Head – Marketing, Jones Lang LaSalle India says the type of marketing strategies that Indian developers employ to sell their products in a tough market may often seem strange to property marketers in other countries. Nevertheless, these marketing strategies are based on a deep understanding of their target clienteles, which are as variegated as the Indian real estate market itself.

“In India, the aspirational quotient cannot be under-estimated and can often be capitalized upon. Certain add-on offerings – or ‘freebies’ – often appear to have no logical connection to the actual considerations property buyers would have. However, they in fact address well-researched ‘points of attraction’ within their targeted customer base. This dynamic is especially true in the case of the nouveau riche class of buyers, but can apply equally to customers coming from established wealth,” says Jacob.

Harmit Chawla, Managing Director of HCorp Realty, however, believes marketing strategy is not the panacea to bad project planning or business strategy. The conceptualization of the strategy takes place when a developer is already conceiving the project-be it marketing, sales or finance. According to him these functions or strategies cannot be put in place post the project.

“Marketing is a dynamic process and with changing times and market dynamics there is need to have a relook at the strategies and at times even reinvent marketing strategies being followed. Marketing is an ongoing process and not one that should start or end with the sale of the project. Marketing in real estate has been linked to advertising, primarily print and outdoor which has a limited shelf life. People have resorted to celebrity marketing which barring getting the eyeballs does not bring major cheers to your P&L account. Similarly, celebrity endorsement has only meant beating your own trumpets and not resulted into tangible results,” says Chawla.

…..to be continued

MCHI-CREDAI property expo kick starts

Posted on by Track2Realty

MCHI-CREDAI Property Show, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty: MCHI-CREDAI property expo kick started on Thursday, Nov 1, at BKC grounds, Mumbai, featuring over 15,000 properties with over 120 developers participating. Axis bank is the co-organiser of the exhibition.

The MCHI CREDAI’s 20th Real Estate & Housing Finance Exhibition, was formally inaugurated by Jairam Sridharan Senior Vice President and Head – Consumer lending & Payments Axis Bank and Sunil V. Shaligram General Manager and Head – Project Finance & Technical Services HDFC Ltd at MMRDA Grounds.

MCHI-CREDAI President Paras Gundecha said, “With the ongoing festive season, coupled with the revival of interest among home buyers, this exhibition is the ideal destination for a cross section of people. Apart from the wide range of properties, we also have facilities for spot finance with as many as 15 housing finance companies participating. We are sure all visitors will enjoy the experience here.”

The exhibition, spreading across 30,000 sq mtr features properties from across Mumbai and Mumbai Metropolitan Region with varied sizes and convenient price points – all in an air-conditioned comfort.

Reflecting growing interest from outside Mumbai, some properties from Pune, Ahmedabad, Bangalore, Chennai and Kerala are also on display at the exhibition.

Bandish Ajmera, Chraiman, MCHI-CREDAI Exhibition Committee said, “Everybody likes to own a house and it is not an easy decision to take. Lot of planning, thinking and due diligence goes in before a family decides to buy their dream home. Based on the buyer feedback we at MCHI CREDAI have designed the exhibition in such a manner that the home seekers save time, efforts and can take their decisions. With our stamp of guarantee – MCHI Hai Toh Bharosa Hai – the buyer is assured to smooth transactions.”

Another unique feature of the exhibition is that many new developers have showcased their properties in competition with the established developers.

Ranging from 1/2/3/4/5 BHK and studio apartments, duplex, penthouses, row houses and bungalows, the expo also has second homes/holiday homes, NA plots, shops and office premises.

Jairam Sridharan, Senior Vice President & Head – Consumer lending & Payments said, “It is a matter of great pride for us at Axis Bank to be associated with this event as it offers a great opportunity to all classes of home buyers to purchase their dream homes. We appreciate the efforts of MCHI-CREDAI in showcasing a wide variety of properties. I am confident that those looking for a house will get what they are looking for here at the expo.”

The exhibition offers a good opportunity not only for domestic buyers but also for NRIs who are looking to invest back at home. As many as 15 home finance companies have set up their stalls to offer spot loans.

Visitors to the expo have a new experience with valet parking, registration counter with state-of-the-art technology that depicts product locator, and a Kid Zone where kids can enjoy while their parents are shopping for their “Dream Homes”.

In line with the high-tech trend, MCHI-CREDAI has implemented a unique QR code to facilitate home buyers to focus on their search as per their requirement.