Real estate developers offer discounts to push sales
Discounts up to 15% expected this festive season; analysts expect Oct-Dec period to garner sales of at least 60k units across seven major cities
Aug 20, 2014
Source : Business Standard
Real estate



will get real this festival season, after a gap of about two years.

Mobile phones have been flooded with messages on WhatsApp, offering discounts. Many brokers are cutting prices from seven to 15 per cent across major cities, with the highest portions in Delhi-NCR and Mumbai. Earlier, freebies in the name of free vacations, motorbikes, a gold coin and a modular kitchen were being offered to lure customers.

Analysts and consultants expect the October to December period to garner of at least 60,000 units across seven major cities, almost double what was recorded in 2012 and 2013, when slowdown had hit developers.

"This time, the festival season will see more activity and sales. The sentiments are positive; enquiries have gone up substantially," says Ashutosh Limaye, head (research & intelligence service), JLL India.

Sales are expected to reach 200,000 units this year, on the back of a good festival season contributing 30-40 per cent to the total, he said. In the earlier two years, total sales were 120,000-140,000 units annually, with very little contribution from the festival season, traditionally considered the biggest season for sales.

Supertech chairman and managing director said brokers were giving 10-12 per cent discounts on the upfront price of flats.

A broker in Noida is offering an upfront discount of up to 10 per cent on unit charges, along with no transfer charges (which a buyer pays to the developer after selling his unit before possession). In Gurgaon, discounts vary by location, in the range of seven to 10 per cent.

The discounts have come aplenty at a time when people tracking the sector are expecting prices to go up. "Housing prices are expected rise by five to eight per cent in the later part of this year and it might go up by as much as 15 per cent in certain micro markets," said Samantak Das, chief economist at property tracker Knight Frank India.

"With the backdrop of a stable government, coupled with high expectations of faster decision making and positive reforms, there is a positive outlook pertaining to the residential sector in terms of sales and launches," Das added.

The sector has been battling declining sales and higher inventory for two years. Developers have been hard-pressed on funds, with not many lenders willing to lend money to the sector. The Mumbai Metropolitan Region had an inventory of 53 months at the end of June and the National Capital Region of 45 months, says research firm Liases Foras. Hyderabad has an inventory of 47 months, Pune of 23 months and Chennai of 26 months. Bangalore has the least with 19 months. An ideal market is considered to maintain an inventory of eight months.



Latest Realty News

Indian e-commerce companies to invest up to $1.9 billion on infrastructure by 2020
Aug 20, 2014
Buoyed by the growing popularity of online shopping in India, the e-commerce market, which is expected to reach $ 20 billion by 2020, will see companies investing close to $ 2 billion in logistics, infrastructure and warehousing in the next six years, a study said
It's realty firm vs villagers in Mangar encroachment case
Aug 20, 2014
A civil court will on Wednesday hear a petition filed by a real estate company against villagers for allegedly encroaching upon its land, which falls under Mangar Bani, a sacred grove spread in an area of 350 acres in Faridabad, next to the Gurgaon border
New plan for illegal colonies before polls
Aug 20, 2014
The union urban development ministry and Delhi government will come out with an action plan with fresh guidelines to regularize all unauthorized colonies in Delhi. This work will be wrapped up in the next few months before assembly polls in the city
‘No occupation papers but forced to take flat’
Aug 19, 2014
Deepak (name changed) had invested in a 2-BHK apartment at Vatika India Next in Sector 82, hoping it would be his dream home in Millenium City with all modern facilities, while he lived in a rented pad in the capital. The project, however, has been delayed and he says he is now being forced to take possession without a grant of occupation certificate (OC)
Steep rentals, lack of quality retail real estate making it tough for luxury brands to expand busine...
Aug 19, 2014
Steep rentals and lack of quality retail real estate at strategic locations near high-income neighbourhoods are making it hard for luxury brands to expand their business in the country in a viable manner, forcing many players to tweak their business plans and go slow
Indians top investor in Dubai's real estate market
Aug 19, 2014
Indians have been ranked first among foreign investors in Dubai's real estate sector, making a total of 4,417 transactions worth nearly USD 3 billion in the first half of the year, according to an official report.
Decks cleared for multilevel parking in Sector 29
Aug 18, 2014
HUDA has finished working on the modalities of its proposed multilevel parking project in Sector 29, which will have a capacity to house 1,300 cars
At Greater Noida, UP govt begins work on creation of industrial township
Aug 18, 2014
The government of Uttar Pradesh has signed an agreement with the Delhi-Mumbai Industrial Corridor (DMIC) Development Corporation for the creation of a Special Purpose Vehicle (SPV), which will oversee the creation of an integrated industrial township spread over 750 acres in the Greater Noida region
People protest as apartments delayed, builder cries political plot
Aug 18, 2014
About 100 residents of Panchkula held a protest near the upcoming Ess Vee Apartments in Sector 20 on Sunday, alleging that the builder had not given them possession of apartments although they had paid 90 per cent of the cost
Cities With Highest Property Prices: Mumbai Tops The List
Aug 18, 2014
With the rise in urbanization, many people in India now rush towards urban areas to settle down. And as such, property rates in major Indian cities are witnessing sharp rise between June 2012 and May 2014, according to data by real estate firm research firm PropEquity.

Latest Realty News Of State

Realty Talk's