Mumbai: Fearing reduced home sales, developers luring people with 'freebies'

The builders claim that these are freebies for homebuyers, but in confidence industry players do accept that the cost of these giveaways are mostly hidden under some other sub head of the overall flat cost

Ateeq ShaikhUpdated: Sunday, October 09, 2022, 06:50 PM IST
article-image
Representative Image |

Mumbai: Inflation coupled with rising interest rates is likely to have an impact on overall sales of homes. As a result, the developers have started doling out several goodies such as 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 giveaways are mostly hidden under some other sub head of the overall flat cost, and only a handful of the players have the financial bandwidth to absorb the cost of such goodies used to attract people.

Starting this Thursday, CREDAI-MCHI, another real estate trade body, will have their property exhibition at Bandra Kurla Complex, Mumbai. At this exhibition, realtors plan to dole out “freebies” such as pandemic benefits that included complete stamp duty waiver, zero Goods & Sales Tax, low booking amount of Rs 21,000, electric bikes, luxury cars, home furniture, home appliances, etc.

“The Covid-19 pandemic forced a two-year break on the much-anticipated property festival of CREDAI-MCHI, which is now in its 30th edition. So this time, we turned this exhibition into a mega confluence of all stakeholders of the Mumbai Metropolitan Region (MMR) where for the first time in India, the developers, the home buyers, the channel partners, the bankers and the architects, the designers and town planners and government agencies are coming under one roof,” said Boman Irani, President of CREDAI-MCHI and Chairman & Managing Director of Rustomjee Group.

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

“There will be over 50,000 properties from over 500 residential, commercial, retail, NA, and farmland projects from different MMR micro-markets on display, starting this Thursday," he said.

Late last month, when the Reserve Bank of India had hiked interest rate for home loans, real estate industry players had called out that it will have an impact on home sales as the affordability of homes will reduce.

Apart from that, the inflationary pressure will also contribute in reducing purchasing power for residential units.

Going forward, with the rising inflationary trend, property prices is expected to further go up by 6-7% said Pankaj Kapoor, Founder and Managing Director of Liases Foras, a real estate research and rating company.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Watch video: Pune police crush modified silencers of 195 bikes with road roller; calls it 'SPECIAL...

Watch video: Pune police crush modified silencers of 195 bikes with road roller; calls it 'SPECIAL...

Cyclone Mandous: IMD forecasts unseasonal rains in parts of Maharashtra in next 48 hours

Cyclone Mandous: IMD forecasts unseasonal rains in parts of Maharashtra in next 48 hours

Navi Mumbai: Four-day property exhibition of CREDAI BANM in Khandeshwar

Navi Mumbai: Four-day property exhibition of CREDAI BANM in Khandeshwar

Navi Mumbai: Mountain Day drive to save Kharghar Hill and biodiversity

Navi Mumbai: Mountain Day drive to save Kharghar Hill and biodiversity

Mumbai: Heavy vehicles restricted tomorrow on THESE roads due to concert at Mahalaxmi Race Course

Mumbai: Heavy vehicles restricted tomorrow on THESE roads due to concert at Mahalaxmi Race Course