You thought it happened only for shirts and shoes? The glut in the property market and the reluctance of a large number of property buyers to hit the market has now forced real estate developers to clear their built-up inventories at big discounts — something largely unheard of in India.
Royal Palms Estates, a project spread over 240 acres of land in Mumbai’s Goregaon East has announced what it calls “Inventory Clearance Sale” of its ready possession properties at a flat rate of Rs 3,999 per square foot. Brokers say that compares with the going rates in the Goregaon area of Rs 5,000 to Rs 7,000 per sq ft.
Prices had any way corrected by 40 per cent from their peak in 2007, but this is probably the first time that a Mumbai realtor is pushing things down by a further 40 per cent.
Like in basement sales, there is a deadline. The offer ends on August 9. And there are freebies like a club membership.
A project of Royal Palms India, Royal Palms Estate is offering both residential and commercial properties in this sale.
Also on offer are condominiums for weekend stays and corporate leases, shops, villas and serviced apartments.
The cheapest offering is a studio apartment of about 340 sq ft available at Rs 13.59 lakh. A three-bedroom, hall, kitchen flat is available for Rs 49.99 lakh.
“The maximum bargain hunters surface during the slack season and take quick decisions if they find a property worth acquiring either for personal use or for investing,” said Dilawar Nensey, joint managing director at Royal Palms India.
He said it also made sense for the company to offer discounts than sit on high-cost debt.
Analysts say if the offer clicks, other developers may be forced to drop prices amid talk of a property glut.
In March this year real estate research agency Liases Foras said 8 crore sq ft space of fully constructed or projects under execution remained unsold in the Mumbai while there was a stock of 15 crore square feet in the National Capital Region.