By: riathareja

riathareja — Tue, 09 Sep 2008 05:36:16 +0000

As builders are facing a fall in residential demand, they are trying to woo home buyers with cars, fitouts, parking discounts. Especially the Bangalore property market, which has entered the wooing phase with home buyers being offered gratis cars, lifestyle accessories and clubhouse memberships as inducement. According to people familiar with property market, this initiative is unhealthy. They are doing this as they have put their money into properties at overheated locations and are now desperate to exit. “When looked at closely, these incentives do not have any significant monetary value. Rather, they are psychological encouragement put in place to catalyse the project’s off-take. Gratis offered by investors or speculators is valued around 12-14 per cent of the flat or plot price,” said Mr. Anuj Puri, country head, Jones Lang LaSalle Meghraj. This practice is not unique to Bangalore, but is also practiced in other metros in less-preferred locations and more prominent in Tier II cities. “This phenomenon exists at some level or the other all over the world, but probably not with the lack of finesse and reservations that exist in India’s current real estate scenario,” he added.For more view- realtydigest.blogspot.com

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By: riathareja