Incentives and discounts are returning slowly to the housing industry after a period of robust growth due to fewer launches, delayed approvals, and steep price appreciations across major cities over the last few years.
Developers, which previously experienced strong demand following the pandemic, are now reintroducing incentives to attract buyers. Offers such as “1% payment now,” fully furnished homes, modular kitchen and even free parking spaces have resurfaced, indicating a shift in market dynamics. However, cash discounts are still limited.
In the newspapers, one can find offers such as Godrej Properties offering a 1% monthly payment plan, while M3M Developers has a ‘move-in now, pay later’ plan that allows buyers to pay 20% after two years. PARAS Buildtech has promised a 50% per annum return with its buyback scheme, and Shriram Properties offers ‘zero extras’ with savings of up to ₹25 lakh. To stimulate housing sales, property developers are enhancing incentives for homebuyers, particularly in the 3BHK and above apartment sizes segments, where sales have remained sluggish.
This trend is particularly noticeable during festive seasons, as developers seek to appeal to cost-sensitive buyers with more enticing deals.“While the real estate sector remains strong overall, multiple factors-including rising consumer spending on other discretionary items, land acquisition challenges, regulatory delays, and fewer new launches along with stock market fall-are contributing to this slowdown,” said Bhavesh Kothari, founder and CEO, Property First. According to industry experts, during the post-Covid boom, developers had little need to offer discounts or schemes as demand surged due to increased savings, low home loan rates, and changing buyer preferences.
However, Q3FY25 results from listed realty firms indicate a dip in absorption levels, signalling that affordability and sentiment are playing a crucial role in the market’s current phase.
“To counter this slowdown, developers have begun reintroducing offers that were last seen in the sluggish pre-pandemic market. This shift points to a phase where developers must actively boost demand rather than rely on organic sales momentum,” said Vineet Surana, MD, APS Property Solution. Residential real estate has witnessed high demand particularly strong in the mid-to-premium and luxury segments. However, with inflationary pressures and interest rates remaining elevated, the affordability of high-ticket homes is being reassessed by potential buyers.
“There is a demand-supply balance happening in the mid-income segment. However, the luxury segment is seeing good demand with property priced above ₹10 crore in high demand. Homebuyers are however more cautious in their purchases and are taking informed decisions as ticket sizes are big,” said Vijay Chugani, founder, ZenXChugs, a Bengaluru-based luxury property broker.
Recent Q3FY25 results from major listed real estate firms indicate a slowdown in new bookings and absorption, even as revenue growth remains strong due to premium housing sales and higher realisations. Some developers reported a dip in pre-sales, reflecting cautious buyer sentiment ahead of the next financial year.
Experts view this as a phase of stabilisation rather than a downturn, with supply constraints preventing sharp price corrections.
