Developers waiting for Diwali for good deals

September 7, 2008	(2 votes, average: 5 out of 5)  Loading ...
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Real estate developers are looking at this Diwali as an opportunity to boost their sales despite the slowdown in the sector. Real estate developers are gearing up to promote sales by offering discounts, freebies and new launches. With the government announcing the payment of two-fifths of the accumulated arrears for central government employees around Diwali, builders are sitting up and taking notice of this chunk of money. With inventory levels piling up and demand shrinking due to rise in interest rates and lack of affordability, property sales have reportedly come down by 50 to 75 per cent since January. “In case the developers fail to create demand this Diwali, the downturn would continue for a longer period,” said Pankaj Jaju, vice president (real estate), Enam Securities.

Several builders in Delhi and Mumbai are planning offers varying from discounted prices to freebies and EMI holidays on property sales. For instance, Orbit Corporation, a Mumbai-based developer, is offering a 15 per cent price discount on its residential projects in central Mumbai. “We are willing to bring down prices by 15 per cent for bookings in Diwali and it can go up further depending on upfront payment by the buyer,” said Ram Yadav, CFO, Orbit Corporation. North India-based Ansal API is planning a sequence of project launches in the national capital region, UP, Rajasthan and Punjab in the festive season. The company plans to offer EMI holiday till possession is taken, in the case of some of these projects.

Many builders are unwilling to come on record that they will offer price discounts this Diwali, but do admit to offering freebies such as free parking, furnishing and even sharing stamp duty and registration fees. The buyers have lots in store for them in the coming festive season.

News Published Under:   Real Estate Developers |

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