Diwali 2024: Do festive discounts matter to Mumbai’s crorepati homebuyers?

Real estate developers are offering gold coins, complementary international tours, fully furnished homes, not to mention spot discounts this Diwali. Having said that, homebuyers who purchase apartments priced at ₹5 crore and above are not necessarily influenced by festive discounts as they are not looking to reduce the upfront financial burden as is the case with affordable and mid segment buyers, say real estate experts.
“Festive offers are not a priority for them,” they say.
According to Mumbai-based developers, luxury homebuyers believe in booking or registering apartments during the festive season as it is considered auspicious but they are not influenced by promotional festive offers.
“Festive periods recognised for their auspicious timing, witness a surge in home buying activity as buyers finalize and register their purchases after months of searching for the perfect home. This year we have seen particularly strong demand for 3 BHK and 4 BHK apartments, with prices ranging from ₹3 crore to ₹50 crore across various markets,” said Ashish Dhami, chief of sales, Marketing and Product Design, K Raheja Corp Homes.
What matters to luxury homebuyers is the quality, reputation, and the overall purchasing experience than promotional festive offers.
Also Read: Mumbai’s soaring rents may lead to a ‘brain drain’ among professionals, force them to relocate to affordable cities
Sharan Babani, promoter of Satguru Builders, which has projects in Bandra said that, “We do not believe in festive offers. These are required in case of mid income or affordable projects. If your product is good homebuyers do not need offers to purchase, especially in the above ₹10 crore price range.”
The company is offering apartments priced at ₹30 crore where festive offers do not matter to such buyers, he said.
Rakesh Setia, president of sales and marketing at Mumbai-based Rustomjee Group that sells homes in the range of ₹1 crore to ₹100 crore, opines that even homebuyers who purchase apartments in the above ₹5 crore ticket size expect festive offers although the nature of these offers is curated to serve their premium preferences.
“While the traditional discounts may not be as enticing, premium home buyers appreciate tailor- made offers, such as luxury interiors, high-end furnishings, or high-end electronics. Additionally, luxury holidays or exclusive experiences sometimes act as key incentives. However, the ultimate priority remains the quality and value of the apartment, which is a major investment,” said Setia.
Also Read: Mumbai’s luxury housing sales up by 8% in H1 2024; touch ₹12,300 crore: Report
According to consultants, it’s usually the real estate developers in the affordable and mid segment who dole out festive offers. “There are big developers who do not brand it loudly but they do give spot offers,” a broker told HT.com
“For luxury apartments, value addition and taste plays a big role in order to close a transaction irrespective of the festive season. However, in the mid segment and affordable segment, festive offers can make or break the deal,” said Deepak Singh, founder – 3 Qubes, a real estate advisory firm based in Mumbai.
“Financial offers such as subvention or flex payments work best in case of affordable and mid segment housing. For the affordable segment, festive offers like gold coin, free stamp duty among several other spot offers do well,” Singh added.
Also Read: Festive season 2024: Mumbai real estate market reports 10% drop in property registrations during Ganesh festival
Runwal Group recently launched a project named 7 Mahalaxmi in the Mahalaxmi area of Mumbai where 3 BHK apartments are being offered for around ₹6 crore, according to local brokers.
Another project by JM Group named Atlantis on Peddar Road in South Mumbai is offering 3 BHK units worth ₹18 crore. L&T Realty has recently launched a project named Island Cove in Mahim with 3 BHK units priced above ₹5 crore, said local brokers.