Christmas season is the season of discounts. But this year it started as early as September. The newspapers are filled with ‘up to 50% off’ ads. So what’s new – you may ask.
What’s new are the discount sales of real estate developers. Earlier I’ve seen press ads, pamphlets, occasional TV ads and kiosks. These days I keep getting calls on my phone from developers about their upcoming projects. There are poster ads about their promotional offers on walls everywhere. There are SMSes and radio jingles as well. There are ads painted on buses and trains. Recently, when one of my friends was looking for a place to rent, she found lot more ads for sale.
Offers of reduction in rate have become a passé. Free furniture, in some cases a piece of land or another smaller apartment, is thrown in as freebie offer.
For projects which have already started, the realty developers are strapped for cash to proceed further. They need anchor clients to go ahead. They have been able to defer the starting date of their upcoming projects. There are quite a few developers with vacancies in completed projects which they are trying to sell in the market. With Banks becoming wary of accepting the real estate property as collateral, their assets have suddenly become worthless.
As with other industries, discount sales are usually to induce sales in slack season or to push the older stock. Do they always work? They used to. In the current scenario, no one is willing to hazard a guess. Come festive season, every retailer has fingers crossed hoping that those who are window shopping would step inside.
For those who are looking for a second home, this is the best time to buy. For those who are yet to book their first apartment, I suggest you stay put. Interest rates are expected to come down and so are the prices of real estate.
As for discounts for other things, consumer confidence is at an all time low with the increasing job cuts. Everyone is in ‘wait and watch’ mode. So am I.
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