Builders offer cars, discounts, free trips to sell flats as soon as possible.
After DB Realty offered brokers free luxury cars ranging between Rs8 lakh and Rs1.24 crore to achieve sales target, other developers and brokerage firms have gone a step ahead.
They are offering freebies to homebuyers ranging from a Volkswagen Vento worth around Rs6 lakh, to a trip to Malaysia, a ticket to the US Open Championship and even a 25% discount on the flat price.
“There is a rat race to dispose of flats as early as possible because of high rate interest and piling of inventory. As per industry norms, a building should be constructed and all flats sold within three years. Currently, it takes almost 72 months for this process. This is not a good sign for the real estate industry and the economy,” said a real estate expert, requesting anonymity.
Currently, there is almost 10.8 crore inventory available in market. “So, to lure buyers, developers, including Nirmal Lifestyle, are offering freebies and foreign trips,” he added.
A few developers are also not charging the stamp duty, registration fee and service tax.
But, some experts believe that instead of offering freebies, developers should slash property rates.
“Though property sales have fallen drastically, developers are still rigid and do not want to slash prices. They offer brokers 4% to 5% profit margin on sale of flats and this pinches them. So, they have started giving marginal discounts and freebies to buyers. But, they will have to reduce prices to sustain in the market,” said Pankaj Kapoor, managing director at Liases and Foras (real estate rating and research).
Brokers, too, are giving cash discounts to buyers despite the lull in the real estate market.
“While developers are offering products to buyers, brokers are giving cash discounts ranging from 7% to 25%,” said Sandeep Reddy of Groffr brokerage firm. He claims his firm has received at least 200 phones calls from interested buyers.
“We even ensure that the property title is clear and bank and municipal corporation approvals in place. It is very difficult to check this for single buyers,” Reddy added. “Recently, a prominent developer offered 25% discount at his projects in Chembur and Kalyan, while another builder offered 10% discount.”
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