BANGALORE: Gold coin worth a certain amount, silver Ganapati idol of `medium size’, diamond pendant worth a certain carat and with `international cut’, these are some of the offers being made to lure prospective home buyers in Bangalore. Other noticeable free offerings include free furnishing of homes, free parking, free club membership, waiver on registration charges and stamp duty and lucky draws, as marketing strategy to attract home buyers.
With the Bangalore luxury segment witnessing significant increase in players and the market not really heating up, developers are using innovative strategies to get the fence-sitters to make the buy.
“Freebies are directed primarily towards the luxury segment as there is more supply than demand,’ states Srini Madappa, a Property Consultant, with over 20 years experience in the Bangalore market. “Such freebies do not work for the mid and lower segments, as the buyers are more interested in cash discounts than freebies.
According to industry observers, the Bangalore residential market did not do as well as expected in the quarter Jan-Mar 2013. Although no one is ready to go on record, sales in the luxury segment did not even meet 50 per cent of the target despite promotions, pre-launches and launch offers. This has resulted in creating a definite change in the set of offerings within the developer community.
Many real estate developers have corrected their prices to attract buyers from the mid to upper-mid segment. This is actually a double whammy as the premium property segment did not do well in 2012 as well.
According to a well known real estate developer, property buyers today look for greater guarantees with regard to construction quality and delivery date. Pre-launch discounts, sizeable rooms and other discounts are some of the other expectations of the buyers at the time of booking.
“The problem is not that there is no money, but that the average IT buyer, who forms the bulk of the buyer population has realized that, fancy club facilities or Gym or even the swimming pool is something that he will not be using frequently. Hence, he is reluctant to pay huge sums of money for them,’’ states Madappa.