Hit by declining sales and fast-approaching debt repayments, property developers are bringing freebies and discounts back.
Lodha Group is offering a four-day, three-night trip to Lords in London, a 32-inch LCD television or a Wii video game console in a lucky draw every week in its Casa Rio residential project near Kalyan, located in the outskirts of Mumbai.
The advertisement says the buyer has to pay a booking amount of only Rs. 27,000, where apartment prices start from Rs. 22 lakh.
RCL and Nirmal Lifestyle are offering discounts, as well.
Although it has not come to the 2008-09 stage, when builders were willing to bear the stamp duty and registration charges, property consultants say it could follow soon, if sales do not pick up.
But the freebies do not seem to have attracted many buyers, as both property prices and lending rates continue to remain high.
Realty prices have increased 40 per cent since September quarter of 2009, severely affecting the affordability of buyers, says Ramesh Nair, managing director, west India, Jones Lang LaSalle India, an international property consultant.
The Reserve Bank of India has raised interest rates six times since March 2010 to tame inflation.
No wonder, property registrations have been falling consistently since August last year. This February saw registrations of 4,716 sale deed agreements, down 22 per cent, compared to the same period last year.
From January last year, the numbers were lower
seven per cent, according to data compiled by equity brokerage, Prabhudas Liledher.