With the price correction in real estate sector, Property dealers offer discounts on the per sq ft. rate of property to expand the Chennai market. Various realty developers who offered flat discounts between 900 per sq ft per 100 and home like Nirmal Lifestyle, Wave Infratech, Brigade Group, Nitish Estates, VBHC, Salapuria Sattva Group, Indiabulls, Malles Constructions, Navin’s, Arun Excello, Ramky group, Jain Housing participated in the campaign held by the online property portal; Indiaproperty.com.
The Chennai-based company; IndiaProperty offers a wide range of properties and various services. According to Ganesh Vasudevan, CEO of IndiaProperty.com, “Most of the new projects are launched with competitive pricing to attract buyers. For instance the developer would not charge for floor rise, give parking free of cost, a per sq ft discount or will not charge for the view. Basically, developers are not lowering their prices on paper, but are offering discounts and freebies,”
Arun Excello Group of companies pointed out that high participation of investors and inventory build-up has put pressure on developers to get cracking on monetizing their investments which has led to price cutting.
Vasudevan stated that “The trend of price revision is not region specific but more prominent on the outskirts like the Old Mahabalipuram Road. If we analyse the top localities in Chennai for the past two quarters, all those pockets along the once popular OMR corridor are missing,”
For real estate developers, such analyses brought forth by online portals provide valuable advice on which properties to discount and where to funnel their marketing spends. Sankara Srinivasan, founder-director,Realtycompass, says patterns are gleaned from the purchase preferences of over 6,000 people who visit his portal every day.
“Now, the contest between portals is about generating leads for a project. But we are focussing now is to give developers ideas as to where their next project can be, or what amenities, say a swimming pool or a spa, are preferred at a certain location,” he added.
According to Arun Excello developers after the oversupply of homes in the city, there is this extra push to woo the buyers. With the varying cost of funding anywhere between 16 to 24 per cent, the developers are also under pressure on the financial front.
According to R Kumar, MD of Navin’s,”FDI funding comes with an Internal Rate of Return of around 24 per cent. Although institutional funding such as from banks comes cheaper, not all developers have access to such funds.”