By: Ravi Sinha
Track2Realty Exclusive: According to a recent data, there are over 100 million unsold inventories in the market and the developers are waiting to liquidate them. No wonder, it is attracting the brokers into group buying options. Property broker Agni Properties also added group buying to its portfolio in July 2011.
But is it a temporary fad? Present conditions are conducive for this business model as group buying works well in a situation where stocks are moving slowly, markets are jittery and there is ample supply. It may not work in a seller’s market.
However, Vivek Saluja, a property management consultant doesn’t agree with this assumption. According to him this is the most lucrative marketing model for all the concerned parties, and definitely the business model of the future.
He says, “See, the dilemma of a prospective home buyer is always there. Can we afford the flat? Should we venture into it at all? To get rid of the dilemma, a new concept of forming a group and buying is now being on offer. All a buyer has to do is show an interest in the deal mentioned on the website by contacting the person concerned and gets registered. The market price at which the property is actually sold is mentioned along with the reduced amount that such online group buying sites offer. The required group members and the last date for registering for the deal are also cited.”
In a way, the online group buying set-up is similar to the model developers share with speculators, who buy in bulk even before the project gets kick-started and get discounts of 30-40 per cent. They pay 50 per cent of the property value upfront. Group buying companies prove more beneficial for developers as they get away with providing lesser discounts than to speculators.
