With residential property prices in and around Mumbai on a slow downslide in the last four months, builders are waking up to the fact, that the party may finally be ending for them.

The property boom, which started in early 2004, had led to prices appreciating as much as 300% in some areas. Developers say this is just a passing phase and that sales can be expected to pick up. But property experts and consultants have a suggestion for all those who want to buy a new home—hang on for at least six months to a year to get the best deal. They say prices are bound to fall, although they are wary of speculating on the extent to which rates could drop.

Several builders have already started offering freebies—like throwing in free parking, not charging a premium for a floor rise and, in some cases, even offering to pay for the stamp duty. This kind of camouflage reduction in prices has started taking place. A real estate consultant said that soon some developers could come out with schemes offering free air tickets or prizes to entice flat purchasers.

Builders are offering discounts of between 10% and 20%. The big developers have a much larger capacity to hold on to their prices. Builders admitted that there had been a 25% slump in sales in the second quarter of this year as compared to the first quarter. Sales in the residential segment are so low that they are pathetic. Even in the south Mumbai market, a developer constructing a brand new building confessed that he had not sold a single apartment in the recent past. The months of April-May were an important period for the sale of flats. If things don’t pick up by June 15, there will be an outright reduction in prices, the recent hike in interest rates on home loans is the final straw.

Property consultants say sales have stagnated and prospective buyers would do well to wait for 6-12 months for a good deal. There are virtually zero sales. Not many builders will admit this. People are just quoting ridiculous prices, demanding Rs 1.5 crore for a one BHK flat in a society up for redevelopment. End users no longer have that kind of money.
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  • Dear

    All above information was published in Times if India day before. & very true fact that prices are going down. Though developers are showing as if no impact on their profit margin But real facts will come out soon.

    If you want to have more powerful impact than all have to decide not to make any transction for another year where developer bound to bring down prices.

    Thoes who wish to have dream home find them selfs difficult to see thier dreams coming true.

    NOW USER HAS TO DRIVE MARKET NOT DEVELOPER
    CommentQuote