‘Group buying’ resorted to by builders during festivities

With the festive season here, developers in the city and Mumbai Metropolitan Region (MMR) are flooding buyers and real estate brokers with freebies and discounts. It has been observed that there is a new trend of ‘group buying’ especially on auspicious days such as Dhanteras.
Group buying is when a developer asks a group of six-seven buyers to purchase flats together and make a one-time payment, and in return the developer offers a price cut.
Rajesh Prajapati, director, Prajapati Constructions, said, “We are offering iPhone-6S to buyers on purchase of 2 and 3 BHK flat. Also, we have a lottery system where three lucky buyers during the festive season will be gifted a Hyundai i-10 car.”
He further said that compared to last Diwali, the response this year to his ongoing project in Navi Mumbai had been tepid. “However, during the festive season we are happy to see genuine buyers approaching us. I expect more positive response in the coming days.”
A report by JLL India last month had advised buyers that the housing market is currently flush with options for prospective buyers, and developers were offering discounts for almost all the projects.
At the same, a report by brokerage firm JM finance, last week, stated that innovative discounts would not be enough to boost real estate market of Mumbai. Freebies such as iPhone, holiday trips, zero stamp duty will not change the buyer’s decision.
Ajay Chaturvedi, real estate expert, said,“The so-called ‘group buying’ was nothing but a gimmick to sell more units. Every developer offers discounts when there is group buying, but now during Diwali, it is being promoted because builders need to generate funds by clearing stocks.”
Harshul Savla, director, Suvidha Group, said, “We do not believe in giving freebies to buyers. It is irrelevant to give free cars and motorcycles because already there is lack of parking in the Mumbai region. Instead, we believe in developing good relations with real estate brokers by giving them exclusive selling rights and doubling their brokerage in our projects.”
Mr Savla further added that last year buyers and investors were unsure about the future of real estate market owing to new government.
“This year there is clarity among buyers and investors about the policies and also there is stability in government, which have made a positive impact,” he said.

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