Realty firms dole out freebies to woo buyers this festive season

Written by Mona Mehta | Mumbai | Updated: Sep 27 2009, 03:57am hrs
The Rs 10,000-crore Indian real estate sector is all set to witness its first upsurge in demand this Diwali after a prolonged downturn. This time, developers are betting big on offering freebies, including motor bikes, modular kitchen and stamp duty registration on booking of upcoming affordable housing projects. On the booking of a high-end apartment, builders are planning to offer two to three car parking slots, apart from price discounts. Usually, developers witness 30% to 35% upsurge in sales during the festive season.

At present, Shivom Group is in talks with Bajaj Auto for providing free Pulsar bikes to end-buyers for its upcoming Shivom Garden affordable housing project in Karjat. Shivom Group managing director Amardeep Gambhir told FE, In Karjat, we are developing 600 flats which will include 1 BHK apartments with a sale price of Rs 9 lakh and 2 BHK apartments at Rs 12 lakh. The Diwali freebies will be provided to customers when they book apartments.

Kanakia Group is also planning to offer two to three car parking slots per flat on booking high-end apartment at Samarpan Royale in Borivali, suburban Mumbai as well a free basement parking at its upcoming Niharika in Thane. According to Kanakia marketing head Vishal Doshi, Each high-end apartment at Samarpan Royale is offered at over Rs 2 crore with 75% open area. Of the total 36 such apartments, 60% have already been sold.

Raheja Developers is planning to offer inaugural discounts on booking forms, apart from 5% discount if the entire amount is paid at the time of possession of apartment for its upcoming Raheja Shilas project at Gurgaon, said the companys spokesperson.

Leading international property consultants feel that the actual sales figure will not fall short nor surpass the 30% to 35% sales increase during this festive season. According to Raminder Grover, chief executive officer, Homebay Residential, Jones Lang LaSalle Meghraj (JLLM), Slowdown hit the market shortly after the Navratri-Diwali season last year. Therefore, investors and end-users were active as always during the festive season in 2008 and there was the usual upsurge of 30-35% in sales, typical for the period. This year, we are witnessing the first upsurge in demand after a prolonged downturn. Given this context, the rise in enquiries is considerable. However, while sales and serious inquiries have definitely risen in anticipation of this years festive season, we do not expect that the actual figure of increase will either surpass or fall short of the traditional 30-35%.

Amidst growth revival in the real estate sector, there are certain developers who are not buying the idea. Pune-based Gera Developers is not planning to offer any freebies or discounts but would focus at offering apartments at competitive prices to end-buyers during Diwali, managing director Kumar Gera told FE. Meanwhile, Hiranandani Constructions, too, is not planning to offer any discounts or freebies to customers this Diwali, said its managing director Niranjan Hiranandani.