Diwali Boom for Home Buyers

October 31, 2008	(2 votes, average: 5 out of 5)  Loading ...
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With the festive season of Diwali just past us, developers are going hammer and tongs at wooing prospective homebuyers with more and more special offers. However, if sources are to be believed, these discounts and gifts have only come about because the real estate market is heading for correction in a big way. Sources say developers are finding themselves stuck in a liquidity crunch and are therefore offloading some spaces at lower margins.

On the one hand, most of the big names in the real estate industry today are putting up a brave front. This is because they feel nothing will change significantly because of the year-long slowdown in the market that has been brought about due to a meltdown global finance, the US subprime crisis and the crash on the Indian stock market. On the other hand, right from global property consultants to local estate agents, talk about the correction occurring at ground level has led to a reduction in transactions, an increase in lucrative offers and discounts negotiated with those who are ready to deal in this rough weather. Some unusual offers by a few developers have made ripples in the market.

Some stunning new offers from around Mumbai have started to make earlier offers — such as free parking and waiver of stamp duty - fade in comparison. One offer claims: “Buy a house and get a car free”. Swastik Group offers 12 months of free stay for home buyers as they will have to pay neither rentals nor maintenance for that period. Earlier, the group was also offering discounted home loan interest. Property rates at Navi Mumbai have also plunged by a couple of thousand rupees per square foot.

Mantri Realty has now offered a buy-back scheme for their clients. After a minimum lock-in period of three years, homebuyers can now give back their flats and get back their buying price if the market value of the flats has gone below the purchase price at that time. At Mira Road, on the outskirts of the island city, prices have reportedly fallen by Rs 1,000 per square foot. But an offer by Cosmos Group for its projects at Thane beats them all - “Buy one, get one free”. And it’s not about a pair of jeans that we’re talking about here. We are referring to a 2-BHK flat. The deal says that if one buys a two-and-a-half BHK flat, you get a 1-BHK flat free. If one opts for a 2-BHK apartment, you get a one-room-kitchen unit at no cost.

News Published Under:   Real Estate Trends |

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