Only heavy discounts could attract realty buyers this Diwali

Q: Builders who are sitting on large inventories are hoping festive discounts and freebies will attract home buyers.

Lewin G,

5th October 2015

Real estate News in Mumbai

property market

home buyers

home buyers expectations

festive discounts

freebies

unsold inventories

unsold inventory in mmr

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Replies (3)

But still the speed of sales may not pick up in the next 3-4 months. Some purchase can definitely be witnessed in projects where the price is right and which are being developed by builders with a light performance track record.

Veena K,

6th October 2015

Comment

Who cares........
As per a report, the unsold inventory across 8 cities was 7 lakhs apartments which could take 4 yrs to clear. But that is not surprising since builders have been unwilling to drop prices, as a result buying a house has become almost unaffordable. Currently, 69% of the unsold inventory in MMR costs at least Rs 1 crore per unit, with the weighted average approximately at Rs 2 crore.

Veena K,

5th October 2015

Comment

Right Veena......and if we compared the average salary earned in the city is only Rs 7.5 lakh. Typically, the price of an apartment should be equal to roughly salaries earned over 6 yrs but today it could cost as much as 27 yrs of salaries. Affordability is a major issue today and no one will buy a house any longer for a 5% stamp duty relief.

Anil Choudhary, Kolkata

5th October 2015

@Anil,
Buyers can get heavy discounts if they bargain with the builder and not settle for the advertised price across the table. Many developers have already rolled out their festive season offerings. DB Realty is offering a straight cut of 18% for its 1200-1500 sq-ft apartments and a free parking slot at its DB Crown project in Prabhadevi, Mumbai. Omkar Realtors' allows the buyer to pay an initial amount of just 5% financial scheme for its Ananta Project at Goregaon. The bank finances 80% of the cost and the remaining 15% needs to be paid only at the time of possession in 2017.

Manilal Patel, Mumbai

5th October 2015

Yes, even i heard that Poddar Developers is offering a discount on stamp duty and registration charges, translating to an upto 8% reduction in prices. This has resulted in a 30% increase in inquiries. Poddar Developers is building affordable homes witha ticket size of up to Rs. 40 lakh in the suburbs of Mumbai.

Sandeep Mhatre, Mumbai

5th October 2015

But i don't think that the property market will see any fireworks this Diwali because home buyers are remain uncomfortable with prices. They will definitely try their luck with some new launches but it is doubtful that they will do fast business.

Veena K,

5th October 2015

Comment

Right Veena.....
Home buyers feel that there could be a correction in prices over the next 4-6 months. Salaried persons are holding back on purchase because there are not confident that they will get reasonable increments. on the other hand, builders who are sitting on large inventories are hoping that festive discounts and freebies will attract home buyers.

Arpit, Delhi-NCR

5th October 2015