In the face of rupee depreciation and signs of a slowdown, it’s time to get innovative. Real Estate companies are coming up with proposals that transform a lean period into an opportune time for purchase. Attractive ‘Break-Free’and EMI-relaxation schemes are proving to be helpful tactics for the industry.

Puravankara Projects Limited, a real-estate developer, which currently has 28.04 million square feet of projects under development has a significant presence in Bangalore, Kochi, Chennai, Coimbatore, and Hyderabad too. The company has launched a campaign called ‘Break-free’ which means freedom from certain financial obligations and is a novel extension of the ‘20-80’, or pre-EMI subvention scheme. The 20-8O scheme entitles consumers to a pre-EMI holiday or interest free loan for 15 to 30 month tenure. This means that the customer will make a 20 per cent down-payment and the remaining payment would be made closer to the possession or after the possession. In some cases of a ready-to-move in property, the customer can pay even 15 months after possession.

It also includes incentives such as ‘Zero’ booking amount, which helps customers to block their house without having the need to arrange the finance for booking and also translates into savings of nearly 2 per cent of the property base price. Waived bank processing fees for taking loan are an added bonus.

Commenting on the campaign, Jackbastian Nazareth, Group CEO, Puravankara Projects said, “We sought to introduce a consumer confidence booster at a time of modest salary increases and high interest rates.  ‘Break-free’ significantly reduces home purchase costs and affords substantial savings to buyers. The proposition has been well-received; we encourage more consumers to take advantage of it”.

According to Vineet Singh, EVP and Business Head at 99 acres.com, a real estate portal, “Subvention schemes are one of the tools that developers are using to ride through the slowdown. If there is a 1 crore rupee flat, then 25-40 per cent is in the form of down payment, and the rest of the installment can start after a relaxation period of 2-3 years.” Another interesting proposition followed by the deveopers is that, they take a fixed amount of down payment and the rest is taken at the time of possession.

Kamal Tyagi, Director, Sales and Marketing, Paramount Developers told Pitch, “Customers are supposed to pay 37 per cent, and the rest at the time of possession. This is provided across all the projects in Noida, Greater Noida, Noida Extension and Ghaziabad.

According to Rajan Narula, Executive Vice President, Unitech, “The group encourages customers to purchase by providing them with ‘subvention schemes’, which offers a relaxation period from the date of purchase. Depending on the purchasing price, the customer makes an initial down payment post which he gets a relaxation period for some time which is when he can decide on his finances and EMIs. Also, he has the benefit of appreciation of property during that time.”

Apart from using interesting financial schemes, realty developers are also banking on emotional appeal. Mumbai based Nahar Group, for instance, is using its residents as ambassadors in its brand campaigns. The group is using the residents of its Amrit Shakti Development to talk about the amenities and facilities to build an emotional connect with consumers for its upcoming projects.

Manju Yagnik, Vice-Chairman, Nahar Group, says, “At Nahar’s Amrit Shakti, we take care of people of all age groups from kids to the aged like offering ramps for wheel chairs, special buttons at home which connect to the medical room in the complex and the security room, a stretcher lift, immediate medical help, ambulance services.”

While large real estate companies tend to spend about eight to ten per cent of their project budget on advertising and marketing efforts, medium companies spend about five per cent. But what seems to be working most for them in these difficult times are schemes and incentives customized for the buyer.