Fearing reduced home sales, developers luring people with ‘freebies’

by decwells
Fearing reduced home sales, developers luring people with ‘freebies’

Mumbai: Inflation coupled with rising interest rates will likely impact overall home sales. As a result, the developers started giving out various goodies like free electric bikes, free furniture, stamp duty and GST waiver among others.

While marketing their respective projects, the builders claim that these are freebies for homebuyers, but in confidence, industry players do accept that the cost of these freebies is mostly hidden under another sub-head of the overall fixed cost, and only a handful of the players have the financial bandwidth to absorb the cost of such things used to attract people.

From this Thursday, CREDAI-MCHI, another real estate trade body, will have their real estate exhibition at Bandra Kurla Complex, Mumbai. At this exhibition, brokers plan to give out “freebies” such as pandemic benefits that include complete stamp duty waiver, no goods and sales tax, low booking amount of Rs 21,000, electric bikes, luxury cars, home furniture, home appliances, etc.

“The Covid-19 pandemic has forced a two-year hiatus on the long-awaited CREDAI-MCHI property festival, which is now in its 30th edition. So this time we have turned this exhibition into a mega confluence of all stakeholders of the Mumbai Metropolitan Region (MMR), where the developers, the home buyers, the channel partners, the bankers and the architects, the designers, for the first time in India and city ​​planners and government agencies come under one roof,” says Boman Irani, president of CREDAI-MCHI and chairman and managing director of Rustomjee Group.

According to Dhaval Ajmera, Secretary of CREDAI-MCHI and Director of Ajmera Realty, the main objective behind hosting this massive real estate exhibition is to boost the real estate market to help the overall growth of MMR.

“More than 50,000 properties from over 500 residential, commercial, retail, NA and agricultural land projects from different MMR micromarkets will be on display from this Thursday,” he said.

Late last month, when the Reserve Bank of India hiked interest rates on home loans, real estate players exclaimed that it would impact home sales as the affordability of homes would decrease.

Apart from that, the inflationary pressure will also contribute to the reduction of purchasing power for residential units.

Going forward, with the rising inflationary trend, real estate prices are expected to rise further by 6-7%, says Pankaj Kapoor, founder and managing director of Liases Foras, a real estate research and rating company.

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