The current pricing policies of realty developers fail to lure property buyers this Diwali. Kumar Builders, a leading realty entity pointed out that heavy discounts and affordable pricing policies can act as a catalyst in increasing sales in the realty sector. They can serve as a great driving force to lure realty buyers invest in property. The prevailing expectations of people about the fluctuations in property prices are affecting the sales adversely. The property market is stagnant with the plethora of unsold inventory.
Kumar builders further stated that particularly the employees are uncertain about the purchases due to the tentative pricing policies. They are not sure that they will get significant increments or not. On the other hand, the builders with huge stock have high hopes from festive discounts to increase sales.
Kumar Builders pointed out the fact that the unsold inventory across eight cities was seven lakh apartments, which could take four years to clear. The reluctance of builders to lower the prices has decreased the sales and made it unaffordable for home buyers. Currently, 69% of the unsold inventory in MMR (Mumbai Metropolitan Region) costs at least R1 crore per unit, with the weighted average approximately at R2 crore,. In comparison, the average salary earned in the city is a mere R7.5 lakh. As JLL sees it, typically the price of an apartment should be equal to roughly salaries earned over six years but today it could cost as much as 27 years of salaries.
Kumar Builders stated that unless there’s a substantial price cut or a very attractive financial scheme, it’s going to be hard to sell. Keeping this in mind, various developers have resorted to offer direct price cuts. But experts advise customers to bargain with the builder and not settle for the advertised price. Meanwhile, several developers have already rolled out their festive season offerings. The mark-down is restricted not just to premium products but is also available on affordable housing.
Kumar Builders pointed out that although the sales might not increase rapidly in the next few months, some changes in the pricing policies and attractive discounts can foster its pace.