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Chennai Real Estate News

With property sales decreasing, builders wooing brokers with better incentives

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With property sales decreasing, builders wooing brokers with better incentives

Many real estate brokers have seen business stagnating with clients deciding to keep their deals on hold for now.

BENGALURU|MUMBAI: Property brokers across key markets are having it good these days, with a rise in their commission and brokerage – in some cases as high as 5-6% – since the past two quarters as realty developers are doing whatever it takes to push sales.

Developers are also offering incentives such as foreign trips and iPhone 7 to get the momentum going. This is in sharp contrast to the usual practice of builders offering around 2% brokerage on transaction conclusion to channel partners.

“Property builders are now very friendly with brokers as sales have dropped considerably. Demonetization has further dented sales that were picking up in the festive season,” said J Sohail Sarooshi, managing partner at Ganapathi Estates, a Chennai-based brokerage firm.

Like Sarooshi, many real estate brokers have seen business stagnating with clients deciding to keep their deals on hold for now.

“Builders are offering overseas trips to close transactions. The commission time has been reduced from six months to a month in some cases,” said Ashwin Chawwla, CEO of Big-Deals.in.

“It is easier to get 5% brokerage from builders who are in stress,” said Chawwla. Slowdown in the property market followed by demonetisation and worries over further clampdown on black money have led to a 40% drop in enquiries and sales of real estate across key markets of Mumbai, Delhi, Bengaluru and Pune.

Deals in the secondary market have come to a standstill with buyers and sellers waiting for clarity, while in the primary market, developers are looking to push fence-sitting homebuyers.

“Any lead is a good lead for builders. High tea and gala dinner parties are a regular now. Demand brokerage or pre-negotiated brokerage is the new norm in the industry. Earlier it was slab-based commission for brokers,” said Prashant Sambhargi, partner at Mars Properties, a Bengaluru-based brokerage.

Slower sales have prompted builders to offer schemes to attract fence sitters. In Mumbai, for instance, several developers are offering price assurance scheme on some of their projects. Likewise, most builders in Bengaluru and the National Capital Region have started offering price guarantee payback schemes if prices drop.

They have also taken the burden of interest subventions scheme till the project is handed over.

“In addition to higher brokerage of up to 2%-3% for conclusion of apartment sales, plotted developments and weekend homes are fetching even beyond 5-6% commission. This is likely to change only after market revival; it will take time before property markets get comfortable with various changes we are seeing around,” said Yashwant Dalal, President, Estate Agents Association of India, the oldest brokers body in India.

According to an NCR-based realty developer, many not-so-serious property brokers managed to conclude lot of deals during the earlier up cycle and homebuyers were also satisfied with the regular price appreciation that they were witnessing in their properties.

However, these brokers could not advise them on right exit and that led to stuck investments. Either the brokers are not operating anymore or investors are not ready to trust them.

This has given existing brokers, who enjoy customers’ faith, an upper hand in huge unsold inventory scenario and are thus fetching higher commission.

According to Knight Frank, home sales as well as unsold inventory in the top eight cities of India dropped. As on December end, unsold housing inventory level in the top eight cities stood at 6.72 lakh units. Of this, unsold inventory in the NCR is the highest at 1.93 lakh units.

Source: thehindubusinessline.

Chennai Real Estate News

Home Buyers Lose The Agents And Opt For Digital Route

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With passing time digital media is becoming the preferable choice of the buyers as well as the developers. Developers are going to online platforms and social media to reach out to their target audience and also the buyers are increasingly going online for searching homes. This makes digital media a mainstream platform to advertise in real estate industry.

C Shekar Reddy, Immediate Past President of CREDAI explained why digital platforms are becoming more popular in the real estate. He said, “IT employees, NRIs form the majority of home buyers today who are tech savvy and use their smart phones for searching homes. Also most of the home buyers today are being influenced by social media while purchasing a home or property. As a result builders and realtors are putting utmost focus on digital platforms to reach out to potential consumers”.

The growing trend can be observed by the way the builders are spending on online platforms. It is far more than traditional marketing and publicity avenues unlike past. Builders have also become conscious of their presence and reputation on property portals and other online platforms. They are taking each step carefully so they can make the right connect with their buyers.

K Sreedhar Reddy of Telangana Real Estate Developers Association explained the growing importance of digital media, said, “Digital platforms and social media provide builders a chance to reach to the consumers in a more focused way. Also they can track the efficiency of strategy online. The cost of acquiring customers through online and social media is also lesser when compared to other advertising channels. Therefore digital platforms are becoming popular in realty sector”.

As per the inside sources, this trend is not only visible in the metros like Mumbai, Chennai or Hyderabad but also in Tier II & III cities. Customers as well as developers, both are relying more and more on digital platforms.

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Ahmedabad Real Estate News

CREDAI New India Summit

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CREDAI is the apex body that represents over 12,000 private Real Estate developers spread across 23 state-level chapters and 177 cities in India. Established in 1999, CREDAI has worked hard to make the industry more organized and progressive by networking closely with Government representatives, policymakers, investors, finance companies, consumers and real estate professionals.

The New India Summit is another such effort from CREDAI to direct focus on Tier II, III and IV cities and develop them to be the forerunners of success. CREDAI New India Summit is all set to unleash the potential of an emerging India. This one small step has the power to give way to a new India.

For the longest time, our leaders and foresighted influencers have put all their time and energy in developing the Tier I cities namely Bengaluru, Mumbai, Delhi, Pune, Ahmedabad, Hyderabad, Chennai and Kolkata. No doubt, these cities have really changed the way people look at India today. These cities are the epitome of advanced technology and modern culture. But they also face challenges due to the grave pressure of urbanization. Decreasing quality of life, increasing the cost of living, overpopulation and unemployment, increase in transit time and traffic congestion, expensive housing, hospitality, education and healthcare facilities are some of the issues that all the Tier I cities face today.

According to a report, smaller cities are developing 79% faster as compared to metros with just 21%. Our of the 12,000 CREDAI members, 76.77% of them are from Tier II, III and IV cities. Looking at the scenario, it is only innate to divert the energies in developing the areas which still have potential. Thus, offering a good quality life to people in those cities itself and taking the pressure off of the Tier I cities.

The Forbes Magazine has said small cities are India’s emerging business locations. The government has also been putting dedicated efforts into schemes that directly benefit the growth of Tier II, III and IV cities. Sustainable economic development, improving infrastructure and transportation, increasing employment opportunities, and introducing technologies for rapid urbanization are some of the prime agendas that the government has been taking actions on.

The CREDAI New India Summit will take place on the 9th and 10th November 2017 in Nagpur, Maharashtra.

Also Read: FS Realty Bags The 9th Realty Plus Excellence Awards (North) 2017

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Ahmedabad Real Estate News

Tata Value Homes Launches “Offer Of The Century” With 99 Hours Flash Sale on Affordable Homes

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Mumbai, Maharashtra, India

Tata Value Homes – a 100 % subsidiary of Tata Housing – one of the leading real estate development companies in India, today announced the launch of ‘99 hours flash sale’ on Tata Value Homes across India. Through this offer, Tata Value Homes will enable customers to own their dream home with 99 percent funding by select banks. The scheme is applicable on the first 99 units across the projects and for a limited time frame of 99 hours starting from 2nd November to 6th November 2017.

Mr Rajeeb Dash, Head – Corporate Marketing, Tata Housing, said, “Tata Value Homes pioneered affordable housing in India and continues to introduce innovative offers to encourage fence-sitting buyers to take a first step towards owning a home. Customers have always been central to our business and this unique 99 hours flash sale is tailored to connect aspirers with their perfect residence from our diverse portfolio of projects.”

To avail the scheme, customers will have to log on to www.tatavaluehomes.com between 23rd October to 1st November and register using basic details. Post registration, customers can visit the site between 2nd November to 6th November 2017 to check for loan availability within 30 minutes and walk away with the allotment of the unit with a loan of 99% of the agreement value.

As the leading provider of homes under affordable housing segment, Tata Value Homes develops affordable housing that goes beyond merely providing a house, to one with a ‘neighbourhood and community’. The first 99 customers will have the convenience to buy a home from the Tata Value Homes projects such as New Haven, Bahadurgarh; New Haven Compact, Ahmedabad; Shubh Griha Ahmedabad; New Haven Boisar I & II; La Montana, Talegaon; New Haven Bengaluru, Santorini, Chennai; New Haven Ribbon Walk Chennai.

About Tata Value Homes Limited

Tata Value Homes Limited is 100% subsidiary of Tata Housing Development Company Limited, established in 2010, to exclusively focus on value and affordable housing. The vision of Tata Value Homes Limited is to be the largest home provider in India. Tata Value Homes Limited has introduced two pan-India brands – Shubh Griha (Value Homes) and New Haven (Affordable Homes). Tata Value Homes Limited is also developing a Mediterranean themed project “La Montana” near Talegaon, Pune, while Shubh Griha is currently being developed in Boisar & Vasind near Mumbai and Ahmedabad, and New Haven is currently being developed at  Bosiar,  Ahmedabad and Bengaluru. Tata Value Homes Limited today has projects in Mumbai, NCR, Ahmedabad, Bengaluru,  Chennai and Pune.

About Tata Housing

Tata Housing is a closely held public limited company and a subsidiary of Tata Sons. It is the first corporate to pioneer the concept of real estate development in India. It is widely recognized for quality construction, ethical and transparent business practices and timely delivery of properties. It has a pan-India and international presence with demonstrated capabilities in Construction, Engineering, Commercial / IT parks, Housing and Township development. It is known for international standards of design and green sustainable developments.

Also Read: Over 2 Crore Affordable Houses To Come Up Over Next Three Years

 

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