In what real estate analysts say could be the last-ditch effort by city developers to salvage the situation before it spirals out of control in the post-Diwali season and a recession gathering momentum, the builders hope the indirect discounts will lure at least a fraction of the reluctant buyers.

A common thread binds all these discount schemes —they all translate into around 10 per cent of the mark-up cost of the property. This at a time when a 20 per cent price correction is what the pundits say is the order of the day.

“These schemes are on offer obviously because the builders are unable to find buyers. A smart customer would negotiate with the builder and reduce the price directly,” said a banker with a leading housing finance institution.

“This is one way for the builders to access cheap finance that can be available for the property market at a time when stocks are down and banking institutions are not easily offering finance. The builder is getting a commercial loan where interest rates hover at over 18 per cent at the home loan rates of 10-11 per cent,” he said.

A scheme such as the offer by Kubix Realties Pvt Ltd of three series BMW car priced at around Rs 33 lakh or 2 kg gold free with a Rs 2.75-crore luxury bungalow would effectively translate into a 12 per cent discount.

On a Rs 55 lakh property, if the EMI waived is around Rs 5-6 lakh, then the discount translates into a direct 10 per cent.

“The advantage for the customers is that they save the EMI money till possession, the bank will get customers and as a builder I will have ready liquidity at my disposal. It is a win-win situation,” said Nainesh Nandu, of Kubix Realities. A bit more complicated than the freebies are the waivers of EMI on the bank loan till the time of possession or the “rate guarantee schemes” to protect the customer from market fluctuations. “If we see that our apartments are selling at a lower rate at the time of possession, we will return the difference money to the people along with interest,” said a marketing person at Belvalkar Housing.

“Unlike in Mumbai, Gurgaon and Bangalore, builders in Pune are still not slashing rates. They fear that direct monetary discounts could lead to things spiralling out of control,” said an analyst with a financial institution tracking the realty sector.

Acording to Ravi Varma, president of the Estate Agents Association of Pune “These are miniscule and convoluted discounts that appear as if the market is falling. Whatever discount you want to give, it

should be done upfront. Such schemes like a free car or an EMI waiver are still not translating into actual relief, as the customer is still paying for it.”

IRRESISTIBLE OFFER?
* Kubix Realities Pvt Ltd: 2 kg gold or a BMW on a Rs 2.75-cr bungalow; EMI waiver for a ‘minimum’ 12 months, ie; till possession for Rs 55-lakh, 2 BHK apartments.
* Belwalkar Housing: Rate guarantee promise to protect against market fluctuations till possession two years down the line.
* Wadhwani Constructions: Tata Indica with a 3 BHK, Honda Activa with a 1 BHK.
* Mont Vert Homes: 40-inch LCD, DVD player, home theatre, fully air-conditioned living room and bedroom and other accessories.
* Trishul Builders: Except for the booking amount of Rs 2 lakh, the balance Rs 7 lakh to be paid after 2 years — effectively an EMI waiver for 2 years.