The Mumbai real estate market showing a positive trend is expected to increase the demand from investors and home seekers. Sooraj Dala, a real estate broker from Chembur, points out, “Prices have been moving in a narrow range in the past four quarters as the market slowly adjusts to the increasing launches.
Since prices in the premium micro-markets tend to be much more volatile compared to the suburban micro-markets, prices in some south and central Mumbai prime areas like Parel, Lower Parel, Elphistone and Mahalaxmi have slumped close to 10 per cent over the previous three quarters. However, prices in Navi Mumbai, Thane and the extended suburbs of central & western Mumbai have either been stable or have accelerated marginally upward.”
Given these variations, a slump in prices might not be perceptible, but sops in terms of free stamp duty and registration fee or waiver of floor charges or car parking charges, rent back and subvention schemes translate into five to fifteen per cent discounts are being offered by Realtors, according to market findings.
In fact, in some premium housing units, discounts as high as 25 percent are being offered to bueyrs. Why exactly are Mumbai developers getting desperate? Media Eye throws light on the revival trend in the metropolis’ real estate market through facts and figures:–
·There are 2.9 lakh residential units under construction in Mumbai, but 1.3 lakh apartments are unsold
·This takes MMR (Mumbai Metropolitan Region) unsold inventory to 44% levels as opposed to 26% in NCR (National Capital Region)
·Demand has been eroded significantly.
·The number of cancellations is also increasing over the past few quarters.
So should you buy?
Perhaps it wouldn't hurt to wait a little more, especially if you are looking to buy in central, claim Mumbai-based real estate investment professionals.
It’s a double whammy for builders with an increase in inventories that’s been coupled with lower demand that would put further pressure on prices. While a rise in interest costs coupled with declining profits will compel developers to lighten inventory.
