The financial year is coming to a close and realtors are stressed by poor sales and large inventories and are looking to find ways to present healthy financials. What is also happening is that refunds and repayments to customers of exiting projects stalled by regulators are being pushed back to the next fiscal. In this scenario, the bargaining power is shifting even more strongly towards the buyer.
The rack rates aren’t changing, but the discounts for deal closures are swelling.At a time when under-construction properties could see a slight escalation in cost due to a revision in service tax rates, there exists an opportunity for buyers of projects nearing completion to strike bargains while avoiding any significant impact of higher taxes.Given the high stock of homes in the market, finding near-completion projects should not pose much of a challenge. Besides, with banks already softening their stance on interest rates in light of the expected future trend, a little year-end bargaining with lenders striving hard to meet their targets can yield promising results.
Realtors are hopeful of future liquidity through the fillip to REITs provided in the budget, but present issues over cash flows are a reality.
To present a pretty picture till money power flows into their hands, via REITs, realtors need all the cash they can get from buyers to dress up their books.If the business optimism does translate into higher economic activity, realtors too will heave a sigh of relief and firm up on prices.
Former Editor, Outlook Business and Executive Editor, NDTV Profit, the writer is a personal finance expert. Mail him at propertyplus@thehindu.co.in
