A new study by the consultancy Real Estate Marketing (REM) reveals that 6 out of 10 Spanish developers are now offering discounts to buyers in an effort to make sales. When indirect discounts are included 71% of developers are offering buyers improved terms.
41% of the developers surveyed by REM report that discounts of between 10% and 20% deliver the best results, compared to 18% favouring discounts of up to 10%, and 11% offering discounts of 20% to 30%. Only 5% of the developers surveyed will consider discounts of more than 30%.
Turning to the effectiveness of using discounts as a means to stimulate sales, the study reveals that 54% of developers report that offering discounts ‘is quite helpful’, whilst 35% say it ‘helps a lot’. 9% say that discounts ‘do not help at all”.
Along with price discounts, developers are resorting to a raft of other measures to attract buyers, such as better payment terms and mortgage subsidies (50% of developers), or ‘more for your money’ deals such as a free garage parking space (32% of developers). Offering free gifts such as holidays has fallen out of favour with developers. Only 11% now offer gifts, compared to more than half a couple of years ago.