Property developers are pushing unsold stock via real estate focused websites

Q: Facing with a large stock of unsold inventories, property developers are selling their properties through real estate websites which sell them at a discount rate.

Awar Ali,

17th December 2015

Property Selling in Mumbai

property selling

unsold apartments

property developers in mumbai

groupon

groffr

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It is seen that a website can sell 450 apartments in three days. But a developer may not be able to sell that many even in six month. But the success of sites depends on how many transactions are done and how much developers are willing to go below the price recommended.

Hemant, Noida

17th December 2015

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It is absolutely right. Now-a-days, buyers expect up to 30% discounts on properties listed on websites and flexi down payment options between 25 to 100%. So a developers can quickly liquidate inventory on a large scale if they use e-commerce services when they need funding or wish to liquidate large portion of inventory quickly.

Chittranjan Pillai, Bangalore

17th December 2015

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Hi Chittranjan,
Seeing the current market condition, property developers need cash from sale of large unsold stock as they need to repay their loans and pay for development of existing projects. As per current data the top 9 cities have over 3 lakh unsold housing unit. Mumbai itself has around 1.5 lacs, Bengaluru has 1 lacs and Delhi/NCR has 1.4 lacs units.

Praneeth Kumar, Hyderabad

17th December 2015

Recently we have seen that HDFC Realty tied up with iBidMyHome for online home auctions, wherein buyers outbid each other for a particular apartment, which has a base price quoted by the developer and a reserve price quoted by the auctioneer. Buyers need to bid higher than the reserve price and the property goes to whoever bids the highest. The final price works out 20-25% lower than the base price.

Chittranjan Pillai, Bangalore

17th December 2015

@Chittranjan,
Even the more popular portals such as Snapdeal, Housing.com claim to have sold apartments in large numbers during Diwali sales. Because websites employ large manpower and data analytics, which give them an edge over normal channels of sales and marketing.

Praneeth Kumar, Hyderabad

17th December 2015

Yes, i read in article that group buying websites like Groupon and Groffr have existed for a while and e-commerce portals like Snapdeal do festive home sales, new age websites like SmartOwner and iBidMyHome are offering individual customers 20-30% discounts. I think it is a good move if developers want to clear their inventories.

Praneeth Kumar, Hyderabad

17th December 2015

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