Declining home sales and cash flows have made property developers dole out discounts and freebies to boost home sales during the ongoing festive season.
Mumbai-based property developer Sunil Mantri Group promises cash discounts ranging from Rs 30,000 to Rs 1 lakh across its housing projects in Mumbai, Bangalore and other cities. Similarly, Nirmal Lifestyle, another city-based real estate firm, offers free stamp duty and registration in its project in Kalyan. This can save you as much as Rs 2 lakh on a Rs 34 lakh property.
The festival season between October and February generally accounts for about 60% of the annual sales for developers, say experts.
Freebies such as free parking, electrical appliances, lifestyle oriented furniture, gold coins, foreign trips and cars are a few other offers that developers have rolled out this festive season.
However, Shajai Jacob, head-marketing, Jones Lang LaSalle India opines, certain add-on offerings or 'freebies' often appear to have no logical connection to the actual considerations property buyers would have. “Not all of these incentives hit the mark, because not every type of buyer can be tempted with freebies.” He further adds, such offers work in the mid-income housing segment if they actually add value to the property or lighten the financial burden on the buyer in some way.
The Indian middle-class is highly price sensitive and is awaiting correction in property prices. These are buyers from primary cities typically eying homes costing anywhere between Rs 35 and 75 lakh.
However, experts say certain freebies such as gold or a foreign travel trip may attract buyers because gold is highly accepted and coveted asset of appreciation that appeals directly to the Indian senses and trips add value when packaged into a property deal.
On the other hand, “Freebies such as a hi-fi sound system or a microwave oven on a 2 BHK in Mumbai is unlikely to lure a budget-conscious buyer who is more concerned with how much the EMIs will impact the family budget,” adds Jacob of JLL.
In addition, some marketing tactics of offering lifestyle-oriented freebies may turn out to be quite effective when it comes to high-end premium homes. Lifestyle-oriented freebies can be designer-wear furniture, bathroom fittings, flooring which inturn enhances the lifestyle of an individual.
But, in cases where there are two or more luxury home projects of more or less equal attractiveness in a single location, these freebies can become decisive differentiators too.
