As
home sales have dropped in the national capital region (NCR), developers are coming up with schemes that offer relief to customers from paying their
equated monthly installments (EMIs) till they get possession of their flats.
'EMI sharing' or 'No EMI till possession' is a concept where home-loan borrowers do not have to pay the EMI until they get occupancy of their flat.
It saves the buyers from the double trouble of paying both
home rent and the EMI on their home loans.
More than a dozen developers, including Ansals and Jaypee, are offering such schemes on their various projects in the NCR. Ansals are offering the 'No EMI' scheme on its Mulberry Floors luxury flats in sector 67 Gurgaon. Similarly, Jaypee Greens is offering EMI relaxation for two years for their Personal Suites at Sports City. For their Krescent Homes project in Noida, Jaypee is offering the scheme EMI relaxation scheme for 30 months.
Customers are asked to pay between 10 per cent and 20 per cent of the home price at the time of booking.
The concept is not new. Many developers in Mumbai and Pune are already implementing it. It is only that the concept is getting popular among developers in the NCR only now.
Developers say that it is a winwin situation for both buyers and developers.
According to Mohit Arora, director, Supertech Ltd, "The customers benefit from a lower size of upfront investment, minimum risk of delay in possession, appreciation in value of the flat booked and no double burden of paying EMI and rent. This scheme provides ample time to the customers to manage their finances."
On the other hand, it helps developers to sell the project without the need to lower the prices of the property and, thus, ensure regular fund flows that can be used for construction purposes.
"It helps boost the sales as it attracts those buyers who are not able to afford both rent and EMI on loans. Also, it attracts the investors as they benefit from the difference in the prevailing home loan rates and the future rates," Honey Katiyal, chief executive officer (CEO), Investors Clinic, said.
However, property experts feel that such schemes are the sign of a sagging realty market.
Pankaj Kapoor, managing director of Liases Foras, a real estate research agency said that these promotional concepts are the indication that a correction in prices is at hand.
"Generally these promotional schemes are among the last things developers do while holding on to current prices. If the scheme fails to generate good response, then they end up offering huge discounts, which leads the property market to correct," Kapoor said.
For brokers the big worry now is that even these schemes are not attracting enough buyers.
"Earlier Jaypee was offering 24 months EMI relaxation for the Krescent Homes and when it failed to generate the required response they extended it to 30 months. Still the response is not so good," an executive from Axiom Properties told MAIL TODAY .
Courtesy: Mail Today 
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