Indian Real Estate Builders are feeling the pinch of a slowing global economy. India and China were among the economies that were growing at a very fast rate and are now among countries experiencing slowdowns. Real Estate in India was at an all time high with single family residential homes, flats and apartments getting sold even before their construction started. Banks were giving loans to prospective home buyers without any cause for concern. All this has now changed after the cracks in the financial market first appeared on Wall Street and later spread to the rest of the world including mumbai’s dalal street.
Leading builders in India have a lot in inventory on hand and are finding it extremely difficult to sell them. No one knows if the bottom of this crisis has been reached and consumers have tightened their wallets. Some builders are now coming out with some innovative incentives and schemes for buyers of high end residential homes and properties.
A builder by the name Jaypee group has begun to offer luxury cars like the BMW 320i, Mercedes C200K and Toyota Land Cruiser for buyers of properties in the price range of Rs. 3 Crore – Rs. 8 Crore ($600K – $1.6 million). For homes in the middle segment with a price range between Rs. 85 Lakh – Rs. 1.5 Crore ($170K – $300K), the gifts are cars that are a little less luxurious like Toyota Camry, Honda City and Maruti Zen. Gifts of 50 gram gold coins are also being offered by other builders. Another builder in India’s financial capital is offering a studio (one bedroom) sized apartment for free on the purchase of one its exclusive bungalows. [Via : TOI]
Customer is definitely king in this economy. But with rising prices, flat wages and uncertain outlook for the immediate future will convince consumers to not spend and save for another rainy day instead.