Freebies, discounts to woo realty buyers

Freebies and discounts are the latest offering of the real estate builders and developers to attract buyers.

Media reports show that housing sales have dipped by 20 to 30 per cent over since December 2007 in Mumbai, Delhi and Bangalore, where prices had been going uphill since 2004. 

Industry analysts are of opinion that discounts and freebies are the first phase of price correction in real estate. 

Another reason cited for the dip in sales in the residential sector is the periodic rise of interest rates seen in 2007. Home loan disbursals have fallen by 10 to 14 per cent in the year 2007 and since.

Mid-size real estate companies are seen as particularly resorting to these tactics to improve sales.

Industry observers say that big realty companies will also have to resort to price cut or provide offers to woo buyers.

Among some of the freebies and discounts offered by builders and developers are savings on stamp-duty, free modular kitchen, free parking, free interiors and some of them are also paying home loan installments for a certain period. 

Orange Properties is also offering cars as freebies. The company offered Maruti SX4 free for every 1500 sq ft flat at Bannerghatta in India's silicon city. The apartments costed Rs. 42 lakh and when compared with the price of the car (Rs.6-8 lakh), the discount was pretty good. 

This Bangalore-based firm also offered an Audi A4 costing Rs 30 lakh to buyers who booked a villa at its upcoming Magnolia Brooksville project in Bangalore. The villa was on offer at a down payment of Rs 10 lakh.

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