News: Luxury flat buyers push for deep discounts-11-05-2020
Updated On: May 11, 2020
Luxury flat buyers push for deep discounts
Buyers are trying to get the best possible deal knowing fully well that the developers don’t have much leverage due to a cash crunch, projects that are stuck due to labour and raw material shortage, and also because of a demand shortage that may well extend into a few months.
NEW DELHI: Buyers who booked luxury flats before the lockdown but did not complete the sales transaction are now seeking an up to 10-20% discount, developers and consultants told ET.
Buyers are trying to get the best possible deal knowing fully well that the developers don’t have much leverage due to a cash crunch, projects that are stuck due to labour and raw material shortage, and also because of a demand shortage that may well extend into a few months.
According to Amit Goyal, chief executive, India, Sotheby’s International Realty, buyers were asking for more discounts in deals where 5% booking amount was exchanged. “We are working out with sellers as in some cases the demand for discount is up to 20%. The seller is also aware of the market dynamics and is flexible,” he said. Sotheby’s, which lists high-end property on its platform, said in cases where 25% money had been exchanged, offering discount was difficult.
Brokers said sellers are giving more time to buyers to pay the rest of the money, after booking amount, given the dire market conditions.
“In the short term, Covid-19 may impact liquidity profiles of buyers and developers. It is possible that in exceptional situations, developers may offer extra discounts based on liquidity requirements,” said Anshuman Magazine, chairman (India, Southeast Asia, Middle East & Africa), CBRE.
