Bangalore: With property prices in Bangalore’s suburbs either stagnating or declining, small and mid-size realtors are being forced to offer freebies in attract buyers. Orange Properties for instance is offering a Maruti SX4 for each flat booked at its property off Bannerghatta Road in South Bangalore. Orange is hawking a two bedroom flat of 1230 sq ft at Rs34 lakh and a three bedroom 1500 sq ft flat at Rs42 lakh with an SX4 thrown in for free. The company, however, says that they are not giving cash discounts. “It is an integrated offer as we are looking to provide our customers with quality lifestyle and SX4 fits in with our strategy.”
Similarly, Ittina Properties is offering silver dining sets worth Rs50,000 to those buying “luxury”apartments worth Rs45-50 lakh at their Marthahalli and Whitefield projects. “Our residential properties are located close to IT companies. In September, we ran a scheme, wherein IT professionals got a 5% discount on residential bookings. It resulted in a 30% increase in sales,” says Mona Ittina, executive director, Ittina Properties
Ankur Srivastava, managing director, DTZ, a real estate advisor says, “Developers are trying hard not to cut prices but provide additional value. With a supply-demand mismatch developers are forced to offer various kinds of freebies.”
Several of Bangalore’s outer suburbs like Bannerghatta, Electronics City and Whitefield have witnessed a softening in real estate prices ranging between 5-15%. However, rather than reduce prices, builders have introduced value propositions like free parking, furnishing, or Italian kitchen in place of regular one.
“Prices have dampened in the city’s outskirts. Now buyers can negotiate for additional facilities at no extra cost,” says realtor Irshad Ahmed of Irshads Property Matters.
Orange Properties, for instance, is running another offer wherein everything from a Maruti 800 to a LCD TV, a laptop and a home theatre system are being provided free
While pointing out that there is continued demand for retail, residential and office space in Central Business District, Feroze Abdulla, managing director, Feroze Estates, says the story is different in suburbs.
“Instead of the gimmick of freebies, builders should provide greater transparency in pricing. Buyers are aware that nothing comes free,” he says.
However, large retail players like Prestige Estates Projects Pvt Ltd, Sobha Developers and Puravankara Group say they are not offering any freebie.
Abhishek Kiran Gupta, senior manager, research and strategy consulting, Jones Lang Lasalle Meghraj says only small and mid-sized realtors are offering freebies to attract buyers.
“The lull in the market since the beginning of this year forced builders to rethink strategy and come up with innovative ideas to add value without reducing price. However, it is primarily the small and mid sized players who have to do this as unlike large players they don’t have a brand image.”