At­ten­tion-grab­bing prices

HT Estates - - FRONT PAGE -

The strat­egy: By repric­ing at the bot­tom of the mar­ket, not only are de­vel­op­ers at­tract­ing at­ten­tion to a project, they are also cre­at­ing a buzz in the mar­ket and at­tempt­ing to cre­ate move­ment in an oth­er­wise stag­nant mar­ket Price dis­cov­ery: In a boom­ing mar­ket, de­vel­op­ers launch new projects at higher prices re­sult­ing in huge profits for in­vestors. In a slow mar­ket, how­ever, buy­ers get to dis­cover the right price at the bot­tom Cop­ing mech­a­nism: Real es­tate experts term it as an ex­cel­lent “cop­ing strat­egy” by de­vel­op­ers who are in a tight spot as far as cash flows are con­cerned. It helps at­tract cus­tomers and also kick­starts the mar­ket in terms of cash flows Lim­ited of­fer­ings: As of to­day, builders have stopped them­selves from us­ing this strat­egy across the board. Most of them are have rea­son­ably priced their new launches. This is to en­sure that buy­ers who have paid higher amounts for their other projects do not feel cheated Not meant for all: Only those de­vel­op­ers who have large land banks, huge in­ven­to­ries and the where­withal to hold on for longer pe­riod of time can price projects at rea­son­able rates. Those with small land banks who de­pend on huge ad­vances from buy­ers for cash flows can’t do the same

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