Leaving the slowdown turmoil behind, real estate companies in Hyderabad are wooing customers with price incentives. And, in return for the upfront payments, the companies are committing themselves to complete the projects according to the deadline.
For instance, Ramky Group, which is into residential towers and waste management, is offering to bear the pre-EMI of its customers till the property is handed over to them.
According to Nanda Kishore, assistant vice president, the idea is to ensure that customers are insulated from delays. The offer is for its ongoing project Ramky Towers at Gachibowli, which is home to quite a few big companies.
“The pre-EMI would vary with the cost of the unit bought by the customers. The bigger the unit, the larger the pre-EMI component. The onus here will be on the builder to complete the construction on time to avoid paying the pre-EMI, which starts immediately after the banks disburse one tranche of the loan,” he says.
Typically, banks finance up to 80 per cent of the project cost in tranches and the EMI starts only after full disbursal.
A customer buying a new flat or a house has to bear the pre-EMI (interest component to the banks), followed by EMI till he gets the possession.
“This is an effort to ensure that cash flow of the customers are not affected,” he says without quantifying how much the company was paying as pre-EMI.
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About 40 customers have opted for Ramky’s pre-EMI interest offer so far. The company expects to complete one block by September and another by this December. In all, it is building 550 dwelling units. The average price per sft varies from Rs 3,400 to Rs 4,000 and the size of the unit, normally a 3BHK, varies from 1,900 sft to 4,000 sft.
Aparna Constructions, which is constructing Aparna Kanopy at Dhulapalli on the city outskirts, offered a special price for its double bedroom flats. The scheme was valid for customers who booked till February end. It was quoting Rs 1,500 per sft and offered a unit of 935 sft for Rs 14 lakh. The amenities cost another Rs 3.65 lakh taking the total to Rs 17.36 crore. However, the company said, the prices would go up by Rs 100 an sft from March.
The company is also offering a price protection scheme for a limited period to the customers of Aparna Sarovar, its project at Nallagandla near Gachibowli. Under this, customers will be refunded the difference if the price falls after they take possession. The company, however, would charge the old rate if the price increases.
While a few units of Aparna Sarovar are ready, Aparna Commune, its another project, would be ready for possession this calendar year, an official said.
Another city-based company Janapriya Engineers is offering properties on dual rates — Rs 1,395 per sft for 60 per cent of the unit and at Rs 1,895 per sft for the remaining 40 per cent — for its new project Lake Front coming up near Sainikpuri here.
“We have devised this scheme to encourage buyers in view of the slowdown,” said Janapriya chairman and managing director K Ravinder Reddy. The company gets 60 per cent of the payment, though at a reduced price, upfront. In return, it is giving an assurance to the customers to complete the project in one year.
Janapriya would construct 2,000 flats, in all, in this venture. However, the deadlines would be applicable only to the blocks where construction had begun, he said.