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It’s been quite a dry season in real estate segment during the fourth quarter of 2014-2015, especially in metropolitan cities of India. The metropolitan cities like Mumbai, Bengaluru, National Capital Region (NCR) and Hyderabad are experiencing quite a slump in the sale of residential units in the last quarter of 2014-2015. NCR is leading in this segment with an approximate inventory of 1, 70,000 units, Mumbai with 1, 69,000 units and Bengaluru with 1, 10,000 units. Despite a large amount of unsold inventory piling up, builders aren’t doing much change in the pricing strategy. The price of a square foot of constructed building has come down from Rs. 13,121 to Rs. 12,835 in Mumbai for the fourth quarter of 2014-15. In spite of it, builders aren’t going for a price correction. They are selling the flats at an average estimated price of Rs. 1.29 crores, which is comparatively much lesser than the original unit price. The average price of flats in Mumbai city limits is around Rs. 3 crores and an average prices for unsold units here are around Rs. 2 crores.Developers aren’t ready to change prices of the residential units much. However, they aren’t keeping quiet either. They are floating many exciting offers in the market to attract the customers. They offer free amenities, flexible financial options, pre-launch offers, customized homes and much more.In order to up their sales, builders are selling homes with luxurious amenities without charging extra fees for it. That only means, the customer buys the home and he gets amenities such as fitness center, jogging track, kids play area, club house, community hall and many other for free. It’s like having a cake and eating it too!Secondly, buyers are offered flexible financial options in prelaunch case such as 20:80, 30:70 and 5:80:15 plans. In 20:80 plan, a buyer makes an initial down payment of 20% and books the home. The buyer can avail home loans from a nationalized or a private bank for the payment of remaining amount. The EMI of the loan starts only after the possession of house. Thus, a customer can own a home by just paying 20% of the amount. Similarly, 30:70 plan means a buyer pays 30% of the flat amount and becomes the rightful owner of the house. He too will start paying the remaining amount in flexible EMIs after the possession of house. In 5:80:15 plan the customer enjoys the ownership of the home by paying a down payment of 5% and opting for a home loan of 80%. The customer has to make a payment of remaining 15% after the possession. In pre-launch offers the builders are offering homes to a dearth cheap price. So it’s a money-saving option for the customers who are looking for good home deals. By the time the home is built the buyer saves anywhere between 25-30% on the unit price.Finally, the customers are also given an option to consult the interior designing team so they get to design their dream home themselves that looks unique and very much personalized.Apart from the entire gamut of amazing offers, the builders in Bangalore and Hyderabad are ready to negotiate the prices with the customers. This has resulted in increase of sales in these two cities thus bridging the gap between unsold homes and the customers. Thus, if Mumbai too has to speed up the sales process of their unsold inventories, it’s better to follow few of the marketing strategies adopted by Bengaluru and Hyderabad.
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