Realtors shun price cuts this festive season, offer?freebies

Potential homebuyers expecting price cuts in the upcoming festive season may have to settle instead for freebies, flexible payment plans, and some cash discount, as builders hold on to prices. Five years into the real estate slowdown, developers have pinned their hopes on a robust sales season this time, but are still unwilling to lower prices, apart from the correction that has already happened in different pockets.Analysts, however, question if that’s enough to bring buyers back to the table. “We are giving ?3-9 lakh spot discounts in our projects in Thane, Borivali and Oshiwara, in Mumbai. This is done to boost sentiment and encourage people to buy homes. If the cost of the apartment goes down, that becomes the single largest motivator for potential customers,” said Parth Mehta, managing director, Paradigm Realty, which sells houses costing ?60 lakh to ?1.5 crore. The discount is offered during the nine days of Navratri this month. The offer may get extended during the entire month. Mehta said while the incentives will not lead to a sharp jump in sales, it would definitely help boost buyer sentiment. Another Mumbai builder, Ruparel Realty, is offering a Scooty two-wheeler with every purchase in its suburban Kandivali project, but with a caveat that the buyer would get the vehicle at the time of possession of the flat and only “if the payment is done on time”. The homes cost between ?60 lakh to ?75 lakh. “Prices are already attractive. Gifting a Scooty is just a token of appreciation for putting trust in our company. It doesn’t cost much,” said Amit Ruparel, managing director, Ruparel Realty. Typically, the period between Dussehra and Diwali is preferred for buying homes. Given the tepid sales in the realty sector, developers are now divided between offering temporary incentives and long-term project and price solutions to buyers.