Developers Offer Discounts & Gifts: Will Buyers Take the Bait?

New Delhi: After months of stagnant sales, real estate players are now gearing up to lure home buyers in the market. Developers are rolling out attractive schemes and discounts to bring industry back on track.

Among various discounts and incentives that are on offer include, free stamp duty, modular kitchen & maintenance, zero loan processing fee and some developers are even going to the extent of offering gold worth 5% of base price of homes and Free Renault KWID & Duster.

Developers say they have no way out but to bear the financial burden to kick start sales.

“We ramped up our sales to 300 managers, hoping it's going to be a good year,” says Vineet Relia, Manging Director, SARE Homes. “Unfortunately post demonetisation we saw a trend line where November we still had some sales but December was a complete washout,” he adds.

As the unsold stock-piled up after demonetisation, Sare Homes say they were compelled to incentivise buyers. However, other players such as Paramount and Mahagun group say it’s been a long-standing trend in the industry to bring back buyers.

“It has been the trend in the industry to offer various discounts to customers. After demonetisation, it has either been broadened or new players have started offering discounts,” says Ashwani Prakash, Executive Director, Paramount Group.

Experts believe that short-term turnaround for real estate is unlikely despite freebies. However, given the market sentiments after the budget, realty sector will witness green shoots in medium to long run.

As Amit Oberoi, National Director, Colliers International puts it, “In the affordable housing segment I believe the market is extremely upbeat. Do I see the same in luxury segment? No. It will take time. Real estate is intrinsically linked with economy picking up and the economy has not picked up yet. I am quite bullish on mid-term to long-term."

So even as customers can now avail lucrative offers on their first home purchase from a variety of developers, it is not expected to bring large traction. In fact, it’s other factors such as government's affordable housing push and interest subvention that is likely to provide desired impetus to housing in the year to come.