Developers Entice Home Buyers with Attractive Prices

Bangalore: Developers are offering attractive property prices in Bangalore to attract home buyers. Some of the offers are like Villas, spacious luxury apartments and Villaments that are priced at 50 lakh, 37 lakh and 47 lakh, respectively. Such announcement of pricing comes at a time when an average 2BHK apartment is being priced at around 50-60 lakh. According to industry players, lowering the property prices is nothing but to tempt home buyers to book the apartment.

The reason behind this abovementioned strategy is that the real estate market of Bangalore did not perform well in the last quarter which in turn has depressed the sentiments of developers, reports Kanchana Dwarakanath of MagicBricks.com.

“Post late 2012, the IT community showed a lot of optimism and started loosening its purse strings and the real home buyer with an actual requirement returned to the market. Based on this optimism several developers predicted the market would pick up further in early 2013. And when they saw this didn’t happen by mid-February 2013, the strategy to lure prospective buyers by either offering a lower booking amount and a perceived lower price for 3BHKs has been adopted,” said the spokesperson for a leading developer, on condition of anonymity.

According to Sanath Kumar, a city-based Property Consultant, “Although the IT segment is not under a pressure that can be compared to the corresponding period last year, people want to take fewer risks. Also the buyer today wants greater guarantees with regard to delivery date and quality of construction.” He further added that “Sizeable rooms, pre-launch discount and other discounts at the time booking are some of the other expectations of the buyer community.”

 “With the EMI deduction slotted to begin about a year and a half or even 2 years later a price of about 80 lakh for the 3BHK seems affordable, and the customer goes for the deal even though the price that attracted him in the first place was 38 lakh,” stated Kumar.

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