By: Ravi Sinha
Track2Realty Exclusive: Mumbai real estate is on its way to bounce back to normalcy this Diwali after a couple of years of turmoil where many economists were clueless as to how a demand-supply product can challenge the conventional wisdom of economics where prices are going northwards and transaction the other way.
However, sector analysts understand that the dynamics of real estate market, though very much a demand-supply driven, are different than any other perishable commodity. And hence Mumbai realty has, of late, surprised all those prophets of doomsday who thought only way for Mumbai was to slip out of India’s leading property market index.
What has changed the Mumbai property market has been a combination of factors-all stake holders getting realistic after the experiment phase post slowdown, new DCR (Development Control Rule) that promises to reshape the city, flexi payment options for buyers, discounts and freebies back in the business and last, but not the least, banks’ changed outlook with being a party to organise property exhibition.
A sample survey by Track2Realty, the real estate market tracker finds buyers who had put the property buying on hold in the last couple of years are in the market with an overall changed outlook.
While more than eight out of ten, 82 per cent, asserts that the new DCR norms are an opportunity to increase the supply in the city, nearly equal number has understood that with ever increasing migration of people looking for a roof over the head, it is a wishful thinking to expect any price reduction. 78 per cent are convinced that it is the right time to buy since price is only going to increase in the year ahead.
Banks’ changed outlook is something that has cheered up nearly seven out of ten buyers, 68 per cent, who are negotiating with the developers for flexi payment options. Nearly similar set of people, 66 per cent, want to make the best of festive offers in terms of discounts and freebies.
Developers also seem to cash on this festive outlook and a number of them rolling out special offers ahead of Diwali at the MCHI-CREDAI’s on-going property exhibition at MMRDA grounds. Free parking space, club membership offers, removing stamp duty-registration and maintenance charges are some of the steps developers are taking to ensure that this Diwali is a happy one for both parties.
The most lucrative offer continues to be a flat discount for spot bookings, with developers waiving off between Rs 200 and Rs 2,000 per square foot, amounting to a reduction of lakhs of rupees in house prices in the sub-Rs 40 lakh category. On October 18, Hubtown launched a lucky draw for its Hubtown Shikhar project, with offer for buyers to win up to 10 kg of silver and other goodies. Sunteck Realty has launched Sunteck City in Goregaon West, wherein it is selling Disney-inspired homes. The Lodha group is giving a 15-20 per cent discount in its Venezia project, where it is quoting Rs 20,970 a sq ft against a market price of Rs 22,000 to Rs 24,000 a sq ft.
“Individual developers are offering their best rates and buyers should make the most of it. The buyers have realised that there is no scope for prices to come down and if they are serious about buying this is the right time to do it,” says Paras Gundecha, MCHI-CREDAI President.
…to be continued
