Realty clearance sale nets Rs 90 cr
The first of its kind ‘inventory clearance sale’ in real estate fetched over Rs 90 crore for a Mumbai-based property developer in nine days, indicating appetite of buyers for the right-priced residential units.india Updated: Aug 16, 2009 22:57 IST
The first of its kind ‘inventory clearance sale’ in real estate fetched over Rs 90 crore for a Mumbai-based property developer in nine days, indicating appetite of buyers for the right-priced residential units.
Royal Palms India, which accumulated huge real estate inventory for over a year due to lack of buyers, had offered to sell ready-possession residential property at Rs 3,999 per square foot, a discount of over 50 per cent from the market rate. The property is located on a 240-acre estate at Goregaon East in North Mumbai
“The response was overwhelming,” said Dilawar Nensey, joint managing director, Royal Palms India. “In just a week, we received enquiries from 11,000 potential customers and we sold 700 flats valued at over Rs 90 crore. It made tremendous business sense for us as we freed blocked funds in unsold property and have made profits even at this price. We were paying a huge interest on borrowed funds and the market was not going anywhere. Buyers lapped it up as they found real value.”
Over 70 per cent of the customers bought the flats through their own funds while the rest through loans from banks. The smallest studio apartment was priced at Rs 13.6 lakh and a one-bedroom flat at Rs 21 lakh.
After this success, Royal Palms has offered to sell commercial properties on ready possession ownership basis at Rs 3,999 per sq ft at the same location. Over 300,000 sq ft of office and mall space was up far sale and Royal Palms expected to earn over Rs 100 crore from this exercise.