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Real Estate Developers come up with Strategy to wo
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Given the current global economic slowdown and its impact on the Indian economy, real estate developers have hit upon novel marketing strategies to woo reluctant flat buyers. Real estate players such as Mantri Synergy, Jains Sunderbans, ETA Rosedale and Hirco Palace Gardens have come out with new schemes to attract buyers.
In what is seen as a clear move to shore up the 'sagging morale' of prospective buyers, property developers have now come forward to pay pre-EMI (equated monthly instalment) interest on part-money disbursed on the housing loan taken by a flat buyer "Given the current situation, builders are taking a conscious decision to bear the interest burden of the consumer," Prakash Challa, President, Confederation of Real Estate Developers Association of India (CREDAI). In the current tight liquidity situation, developers find it difficult to raise finances. When one buys a flat on mortgage, the money is disbursed by his/her bank to the developer in stages. This way, the developer gets the money upfront.
This usual practice obviates the need for him to go in for market borrowing to fund his project.In the changed economic context, the prospective flat buyers have turned cautious and are postponing their buys, anticipating a drop in real estate prices. This has put the developers in a tight corner. In order to retain the buyer, especially during the slump period, the real estate players are now opting to dish out freebees such as payment of pre-EMI.
24th October 2008 Indian Realty News
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| 40. | Real Estate Developers come up with Strategy to wo - Delhi, India Dec 25, 2008 |
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