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Indian real estate developers, who are currently going through tough times due to the muted sentiments in the realty sector, are coming up with various offers to improve liquidity. A new offer brought up by reputed developers in the NCR is a property swap for the buyers of their stalled projects. Under this offer, a buyer can swap their property in the stalled project to buy a different one in an under-construction or ready-to-move project.
The only condition is that the buyer must be ready to pay at least 70% of the price of the property they choose to swap the stalled one with. This will provide the developers with the credit they need to complete the stalled projects and help them gain customers at the same time.
This deal would also help the builders cut down on brokerage costs. Once a buyer of one of their stalled projects applies for the swapping offer, the developers themselves would approach other buyers of the same project to check if they want to swap as well. Through this, they can sell off the properties in the other projects without having to pay advertisement agencies, brokers, etc.
The amount which the buyer of a stalled property has already paid would get deducted from the cost of the property they would finally buy. Once the stalled projects are completed, the developer can sell those properties and recover the remaining amount.
This scheme has already been offered by several developers such as Supertech, Bhutani, Migsun Group, etc. while others are starting to follow the trend as well. In some cases, the developers are even working with each other to offer the buyers with a larger variety of properties to swap. Brokers are working as intermediaries between developers & buyers thus making the process even smoother.
One can even swap a residential property for a commercial one. In case of most investors, who are not buying the property for their personal use, the type wouldn’t really matter a lot. Their goal is to earn returns, which they can do with a commercial unit as well. In fact, commercial properties in regions like Noida, Gurgaon, etc. are quite profitable investment assets.
This is also beneficial for the original developer of the commercial property. For instance, if a buyer of a stalled residential project swaps to buy a commercial property by paying 70%, or whatever the balance amount, it would save the developer of the commercial property about 30% on advertisement and other costs. When the developer is getting a bulk of customers, it would add up to considerable profit.
It is expected that more such schemes would come up in the realty sector and help to clear the growing unsold inventory.
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