Realty market floods with offers

Posted On: 2014-09-23 22:04:18

    Hit by slow in the real estate market owing to the unaffordable property rates in Mumbai , developers are extending many offers to attract demand. Apart from offering " no EMI " or no interest payment for a year or two , Dosti Group has offered iphonnes 5s with Mac Notebook or 40  gms of gold to prospective buyres   Wadhwa   Group is offering zero service tax while Siddhi Group is offering two air - conditioners and a semi - modular kitchen for their products. Some like Nahar Group and Rustomjee , are giving out flats under the 20:80 scheme wherein the customers pays 20 percent upfront . there are also reports of builders offering 32-  inch led TV  And Split AC free.           
    The much - coveted " possession - linked payment plan " is an arrangement in which the buys pays 20-25 per cent per cent of the apartment cost in advance and the rest is paid on possession.   " Builders are facing the biggest ever liquidity crunch and are running out of money to execute the projects further . Almost all the projects are lying incomplete and buyers booking money has  got tied up in the projects . So possession linked payment plan is definitely going to infuse confidence among the customers "  said an industry insider 

   "Buyers see immense benefits in paying just 20-25 percents to the developer while booking . this eradicates the risk of the developer not completing the project on time and of the developer going bankrupt and not having to pay for a product that is not yet ready "  said Om Ahuja , CEO , of Residential services , Jones Lang  LaSalle India . He added , "  selling a project before competition is called " off - Plan " and this can be approved by the local regulator , but only on the basis of a special request and based on the overall credibility of the developer . such checks are missing in India , with possession - linked plans, the benefits to buyers must always be seen in the light of multiple risks " 

Source : The Asian Age - Mumbai (09-FEB-2014)