With the aim to attract more buyers, Mumbai developers are now launching their new projects at lower rates.
Sluggish realty market and weak home sales have affected Mumbai Developers severely. This has forced them to launch their new projects at comparatively lower rates than the existing prices.
Due to the weak home sales, most of the developers are now debt-driven. The experts see the Mumbai developers move to offer new launches at lower prices as a good marketing technique. They say that it will surely improve the sentiments of the takers.
New launches in Lower Parel area in Mumbai are offered at Rs.25000 per square feet. This is below the existing rate of Rs.28000 per sq. ft. It means that the Mumbai developers have cut short the premium property prices by almost 15%.
A few days before news had come up stating that the property prices are shooting in the top cities despite weak demand for housing units. Top cities like Bangalore and Delhi also see lowered demand for housing units.
The numbers of unsold inventories are rising in all these cities. The situation in Mumbai too is not anything different. Property prices have gone up by three percent in the city while the sales have gone up only by one percent.
This also has affected the sentiments of the property buyers. Always the demand falls in opposite proportion to the rise in prices. Thus by reducing the prices, Mumbai developers hope that they can improve home sales in the city.
Commenting on the issue Om Ahuja, CEO Jones Lang LaSalle India, said that the prices are really competitive. He added that this will boost the sentiments of the buyers.
This is what the Mumbai developers too hope for. They are sure that they can save the situation only by cutting the prices down.
