Developers Shower Offers for House Hunters in Mumbai

Q: What is the reason real estate developers are giving offers for home buyers in Mumbai?

Amreesh Murugan,

5th August 2013

Real estate News in Mumbai

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Replies (3)

I think this kind of scheme and offers boost sales temporarily, they would not help in the long run

Abhishke Karule, Mumbai

5th August 2013

Comment

According to Cushman and Wakefield official for properties to really sell, the prices of properties have to go down, especially in distant suburbs like Panvel and Navi Mumbai where property prices are going up despite sufficient supply.

Arup rajan, Mumbai

5th August 2013

It was observed that despite attractive offers, new home sales had fallen by 12% in the second quarter of this year in the Mumbai Metropolitan Region.

Abhishke Karule, Mumbai

5th August 2013

The chairman of Confederation of Real Estate Developers Association of India (CREDAI) said that, though developers find it difficult to offer huge price cuts in property due to tight money market and substantially increasing construction costs, they are willing to negotiate deals with buyers. The offers and discounts negotiated depend on the scope and need of margin reduction. Some negotiated deals have seen offers of 10-15% discounts.

Jerome Fernandez, Mumbai

5th August 2013

Comment

For example, the Aqua Lodha project by Lodha developers has a price of Rs. 10,900 per sq-ft. The developer is offering a ready-to-move-in option with a discount of Rs. 700 per sq-ft. Similarly, the price of Grand Vista Apartments at Ulwe, Navi Mumbai, amounts to Rs. 5,100 per sq-ft. The developer is offering a discount of Rs. 350 off per sq-ft with zero brokerage. Another developer is offering a discount of Rs. 750 per sq-ft on a project on Mira Road with a lucky draw, which has a Maruti Swift Dzire as the first prize.

Jerome Fernandez, Mumbai

5th August 2013

Land developers are now offering various incentives to prospective buyers in Mumbai. The offers are focused on boosting apartment sales as well as combating the problem of inventory build-up. While new projects are coming up, old ones are not selling, leading to inventory build-up. This has increased pressure on developers, leading to selling of properties through offers.

Anuj Gupta, Mumbai

5th August 2013

Comment

What are the kind of offer the developers are giving to the home buyers

Amreesh Murugan,

5th August 2013

Offers vary from discounts on per square feet of the property and exemption from floor rise to offers such as the developer paying the stamp duty and registration fees (accounting for 4-10% of property cost) and paid holiday. Some other offers include free covered parking spaces, developer paying electricity bills for a specific period and zero development charges. The discount schemes are most witnessed by pockets of Mumbai, Navi Mumbai and some distant suburbs such as Panvel and Mira Road. Offers and discounts are being given depending on the developer's capability and leverage.

Ramesk Polekar, Mumbai

5th August 2013