Realty firms tweak norms to push sales
Developers are using the time-tested strategy of pushing sales through smaller houses amid high prices in commercial markets
May 28, 2013
Source : The Economic Times

 

MUMBAI/BANGALORE: Sluggish commercial market is prompting developers, occupiers and financiers to come up with different ideas to protect their interest and get things going. While developers are tweaking their offerings along with easier payment structures, including installment option, private equity players are opting for strata buys rather than acquiring entire projects for complete control.

Developers are using the time-tested strategy of pushing sales through smaller houses amid high prices in commercial markets too, as large floor plates are not finding many takers given that most corporates have put their expansion plans on hold. Builders are now targeting professionals such as lawyers, CAs, traders and small businessmen with compact offices, lower prices and easier payment options to prop up their cash flows.

Developers are also trying to attract prospective buyers by offering various incentives or packages like monthly installments, 20:80 deferred payment schemes and even fully furnished or ready-to-move-in offices.

"The commercial property market cycle is on a low and there's liquidity stress as residential sales are also stagnant. Smaller offices of 500-1,000 sq ft size are selling the fastest as the ticket size is lower and both end users and investors are buying, given the attractive and low price points while high-net worth investors are buying pre-leased offices," says Ravi Ahuja, executive director at Cushman & Wakefield.

"The seasoned investor knows that the cycle will turn again in the next 3 to 5 years and they are betting on this," he adds.

 

Royal Palms Estates, a Mumbai-based developer, is offering a scheme to offload its inventory of ready-for-possession offices where the buyer gets possession first and pays a larger part of the price in installments over two years.

Latest Realty News

Housing prices rise by around 1 pc in 20 major cities: NHB
May 28, 2013
Housing prices have increased marginally by an average 1.1 per cent in 20 major cities, including Delhi and Mumbai, in January-March 2013 over the previous quarter due to slowdown in demand, National Housing Bank said today.
YES Bank CEO Rana Kapoor's family buys Rs 128 cr house next to Mukesh Ambani's Antilla
May 28, 2013
The family of YES Bank BSE 0.11 % CEO and managing director Rana Kapoor has bought a residential building - jointly owned by Citibank and GlaxoSmithKline - on tony Altamount Road in Mumbai for Rs 128 crore, and plans to build a home there. The building is next to Mukesh Ambani's 27-storey Antilla.
Indiabulls Real Estate can move to Rs 110: Tulsian
May 28, 2013
SP Tulsian said "By and large, I am keeping a positive view on all the real estate stocks whether you talk of the Indiabulls Real Estate or Prestige Estate , Anant Raj . Maybe because Indiabulls Real Estate has a good presence in Mumbai, the three pockets - National Capital Region (NCR), Bangalore and Mumbai are really doing quite well."
State push for road projects
May 28, 2013
Road projects under the Pradhan Mantri Gram Sarak Yojana (PMGSY) scheme received a push on Monday with the state cabinet passing a proposal to form eight programme implementation units (PIU), which will look after the road construction projects in seven districts.
NRI woman's father arrested for property fraud
May 28, 2013
A non-resident Indian based in England, Irendeep Brown, 34, got a case registered against her father, brother and uncle for allegedly duping her of money to buy property
Gujarat International Finance Tec-City in trouble, seeks government help
May 28, 2013
Gujarat International Finance Tec-City (GIFT) desperately needs funds to extend basic civic infrastructure - drainage, water supply lines, utility duct lines, district cooling system and infrastructure for power supply - across the entire first phase of the GIFT city area
Corporation to develop facilities around metro stations
May 28, 2013
As metro rail plans to open the Koyambedu-St Thomas Mount elevated line by mid-2014, Corporation of Chennai is getting ready too — to provide access to the stations on the route.
Charges framed in Jalgaon housing scam
May 28, 2013
A Jalgaon trial court on Monday framed criminal charges against minister of state for transport Gulabrao Deokar and former housing minister Suresh Jain, the main accused in the Rs 169 crore Jalgaon housing scam.
SUV, superbike seized, Sethi back in jail
May 28, 2013
Police on Sunday seized three vehicles, including an SUV and a power bike, owned by AT Group's CMD Pradip Sethi. He was arrested here on May 12 for allegedly running an illegal money circulation business in Odisha.
CBI detains one in gold loan fraud
May 28, 2013
The CBI here on Sunday detained Manabhanjan Sahoo, a jewel appraiser of Odisha Gramya Bank's Dumduma branch, in connection with the recent alleged Rs 13-crore gold loan fraud. CBI sources said Sahoo was on the run ever since the loan fraud surfaced earlier this month.

Latest Realty News Of State

Realty Talk's