The Hindu Business Line : The realty bites – freebies for the asking now

Chennai, Aug. 25 It may not have reached the kind of bargains that you get at some of these new retail supermarkets – ‘buy one shirt and take another free’ or ‘buy one plate and get two tumblers free’.

But going by anecdotes, the real estate market, in pockets, is beginning to see “add-ons” being thrown at customers who are sitting on the fence, if they opt to buy now.

Of course, as savvy buyers know, you have to ask for them!

A senior bank official says that in Mumbai, these incentives have probably come to a stage, where institutions probably would get one flat free if they take a dozen flats for their staff!

Builders who have sunk in money probably need to get a new crop of buyers into the market to keep their coffers clinking and liquidity flowing. With property prices shooting up, a number of buyers are postponing purchases, while sellers are sitting tight and hoping to tide over this phase.

Builders and sellers don’t want their card rates to come down. Just as car manufacturers and dealers push sales in the off-season by throwing in season discounts, incentives and gifts such as an audio system or an air conditioner or pay the first year insurance premium, there is a similar bouquet of goodies coming your way.

Here is a sample: Some builders offer to bear the stamp duty on the property. Some offer to pay property insurance for three years. Some are offering a car park free (which would earlier be billed separately and in cash). Some are offering furniture and fittings free.

And some are waiving the “floor rise” charge – that would often add Rs 100 to Rs 200 per sq ft, for every floor above the 5th floor. For some high-rise buildings in Mumbai, the difference would often amount to about Rs 8000 per sq. ft. between the 5th floor flat and the topmost flat, a few dozen floors above!

All this is a sea-change from the situation that prevailed about six months ago.

Then, prices of real estate went up daily. Looking up the weekend editions to browse property prices became a national pastime. Rather, to be more accurate, the scene that played itself across many households in urban India was about wondering whether to plunge in immediately or wait one more week and risk another increase of Rs 100 to Rs 200 per 1,000 sq. ft flat.

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