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HindustanTimes Fri,11 Jul 2014

Realtors may rain freebies in the festive season

Sachin Dave, Hindustan Times  Mumbai, October 04, 2012
First Published: 21:41 IST(4/10/2012) | Last Updated: 01:15 IST(5/10/2012)

Customers, especially in metros, who are planning to buy a house this year, could see some freebies offered by real estate developers.

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These may include free parking and easier terms to manage home loans.

Sales have hit a low even as inventory pile-up and cash flow issues plague the sector, whose firms are trying to use every trick in the bag to push their ware.

Real estate industry officials say developers in some cases are likely to pay the initial three years of equated monthly installments (EMI) until  a buyer gets possession of the property. This can help buyers set off rents against future EMIs.

http://www.hindustantimes.com/Images/popup/2012/10/05-10-12-biz-02.jpg

Other incentives expected to woo buyers include waivers on registration charges and stamp duty, lucky draws,  gold coins and free furnishing of homes.

"Around the festive season especially Diwali, real estate developers may try a tried-and-tested trick in the book to offer freebies," said Anshul Jain, CEO, DTZ India. "It had worked earlier during the grim period, and it could work this year too."

Residential real estate prices have remained high and unaffordable for most customers in metros, especially in the National Capital Region and Mumbai Metropolitan Region.

Demand has gone down by 25% in Mumbai since 2011 and more than 10 million apartments are lying vacant according to a recent study by Knight Frank.

Industry experts, however, say that the demand can be brought back significantly only if prices or interest rates fall.


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