Realtors hope to clear inventory on freebies, festival sales
Mumbai: Realty developers are hopeful of clearing a large portion of their inventory pile-up during this festive season by luring in buyers with freebies and discounts, even as they sit tight on declared prices, said industry experts.
"Higher interests and the overall slowdown has led to a significant build-up of unsold units with developers in most of the major realty markets over the past few quarters, adversely affecting cash flow and impacting new project launches," KPMG India partner Neeraj Bansal said.
Further, RBI's stringent directives like banning the 80:20 scheme is expected to make things more difficult for developers, he said.
The September-December period witnesses maximum launches and publicity of real estate projects.
However, industry watchers are not expecting any price correction during the period.
"We don't expect any price correction now. Most projects have maintained the price levels or in some cases gone up marginally. But since they have already been factored in the slowdown, they will cautiously plan their sales," PwC India associate director Bhairav Dalal said.
Developers are likely to attract buyers through several discount schemes/gifts with most common being gold coins, cash-back on monthly rentals, customisation, free parking and club facility, zero brokerage, upfront cash discounts among others.
According to realty portal Magicbricks, developers in metros like Mumbai, Delhi-NCR, Bangalore, Kolkata, Pune, Chennai and Hyderabad have already announced various freebies.
"Offering such innovative schemes is most likely to result in higher enquiries and footfalls, which coupled with festive offerings, may help generate decent sales," Bansal said.