HYDERABAD: While the lockdown has not put a stop to enquiries about new homes, Hyderabad’s developers say most prospective buyers are now calling with added requests — from a higher rate of discount of anywhere between 15% and 20% to refund schemes, in case they wish to withdraw the deal at a later stage. Another common request: relaxation in payment schedules.
“Though much lesser than usual, we are receiving a fair number of calls every day for all the three projects open for sale. At least 50% of these probable customers are asking us to ease payment schedules, once the deal is signed. And that’s expected since everybody is cautious about their finances now,” said Tapas Patel, CEO of Om Sree Builders and Developers, a prominent real estate firm from Secunderabad. While he is working on accommodating this request, at least till all industries stabilise, Patel says offering a discount isn’t an option.
Developers across the city agree. Reason: the fear of a higher rate of construction once the lockdown is lifted. Industry insiders say that they are already receiving feelers about an upward revision in the price of cement, steel and other raw material, soon after the market resumes work.
“That is, anyway, going to take a toll on builders. So, to offer discounts, higher than what is usually given — not more than 2% to 5% — is out of the question. The profit margins are already very thin,” said Ashwin Rao, director, Manbhum Constructions. He is certain that the residential sector in the city, will slowly but steadily start looking up in the next six months.
So is R Suresh Kumar, senior vice-president (business operations), Prestige Group (Hyderabad). And while many developers are planning to defer their new launches for 2020, the Bengaluru-based firm is eager to go ahead with theirs. However, cut in property rates is not on offer. “A lot of buyers are enquiring about the possibility of a refund scheme so that they can cancel their booking if they are faced with financial issues in the future. But that’s tough to work out,” Kumar said adding that apart from IT, developers will not eye a larger clientele from the pharma industry, which is witnessing an upswing. Also on the radar of many are businesspersons, particularly those dealing with essential commodities.
April 28, 2020