Hyderabad Developers Resort to Lavish Gifts to Combat Sluggish Home Sales
In a bid to revive sluggish sales, numerous developers in Hyderabad are rolling out extravagant incentives, including premium motorcycles, 24-carat gold coins, and electric vehicles, to entice prospective homebuyers. This trend emerges as the city's property market faces a notable slowdown, prompting builders to adopt aggressive promotional tactics.
Extravagant Offers Across Prime Locations
One prominent developer has pledged to provide every buyer with a Harley Davidson motorcycle worth approximately Rs 3 lakh for bookings in select projects located in key areas such as Kokapet, Kukatpally, Uppal, Patancheru, and Rajendranagar. Meanwhile, another builder on the opposite side of the city is offering an electric vehicle valued at around Rs 8 lakh to confirmed clients in an upcoming residential venture situated between Uppal and Ramanthapur.
Gold has also become a popular incentive, despite its soaring prices. A builder from Miyapur is promising gold worth Rs 3 lakh with the purchase of every ready-to-move-in apartment, which includes 2BHK or 3BHK units priced between Rs 75 lakh and Rs 85 lakh. This offer is complemented by free interior work for a children's bedroom and a modern modular kitchen.
Expanding Trend Beyond City Limits
The practice is not confined to residential projects within Hyderabad. Developers marketing open plots in Mahabubnagar have adopted similar strategies, with one offering a 10-gram gold coin to each buyer. Currently, the price of gold stands at approximately Rs 17,000 per gram, making this a significant added value for potential investors.
Industry Perspectives on Sustainability and Regulation
Industry insiders view these schemes as attempts to accelerate sales amid the property market downturn. Ch Ramchandra Reddy, joint secretary of the Confederation of Real Estate Developers' Associations of India (Credai-National), noted, "Whenever the market slows down, developers introduce special deals to offload unsold inventory. In most cases, the cost of these freebies is factored into the project pricing, though buyers may not be aware of the calculations."
Realtors argue that attracting buyers with expensive gifts is neither healthy nor sustainable for the real estate sector. N Praveen, president of the Telangana State Realtors Association, stated, "You cannot keep attracting buyers with freebies forever. If a customer genuinely wants to purchase a flat, the decision would be based on location, construction quality and pricing, not on a gift. Such schemes are primarily meant to boost short-term sales and clear unsold inventory. At best, they generate temporary interest."
Some realtors also highlight that these promotional offers fall outside the regulatory scope of the Telangana Real Estate Regulatory Authority (TG-RERA), potentially reducing consumer protection. A TG-RERA official confirmed, "Such schemes and incentives are essentially commercial strategies to attract buyers, and we cannot monitor them. However, if a developer fails to fulfil assurances mentioned in the sale deed — including such gifts — buyers can file a complaint and necessary action will be taken against those developers."
This situation underscores the challenges in Hyderabad's real estate market, where developers are leveraging high-value incentives to navigate a period of reduced demand, raising questions about long-term viability and buyer awareness.
