Home buyers in Mumbai appear to be holding out for a notable 'crash' in real estate prices, as various incentives such as stamp duty waivers, free lifestyle homes, modular kitchens, and complimentary parking have failed to stimulate home sales significantly.
Unless developers are prepared to reduce prices by at least 25-40% to make properties more affordable, potential buyers are expected to remain cautious. This sentiment was evident at a four-day property exhibition organized by the Maharashtra Chamber of Housing Industry (MCHI) at the Bandra-Kurla complex, despite the event's substantial attendance.
Exhibition Highlights:
- Attendance: High turnout of quality home seekers across all four days.
- Properties on Sale: 800 properties by 85 real estate developers.
- Financing: 15 housing finance companies participated.
- Conversion Rate: Estimated to be below 10%.
Pravin Doshi, president of MCHI, expressed enthusiasm about the response, noting the rising demand for housing in Mumbai and the state. However, the high footfall did not translate into proportionate sales, which is typical for personal purchases like homes.
Market Indicators:
- Negotiation Opportunities: Genuine buyers could negotiate further at project site offices.
- Supply Hotspots: Majority of new supply expected from Mulund, Thane, Navi Mumbai, and Bandra to Borivali.
Additional Incentives:
- Sunil Mantri Realty: Offered Rs 100 per square feet discount.
- Vinay Unique Constructions: Gave away 10-gm gold coins.
- Kohinoor City: Waived club membership and floor rise charges.
Affordability Concerns:
Despite these enticements, affordability remains the primary concern for buyers. Flats ranging from 550-800 square feet and priced between Rs 35-60 lakh garnered significant interest.
New Discount Schemes:
In light of rising interest rates, some developers introduced subvention schemes on home loan rates. Companies like Mayfair Housing, Ekta World, and the Dosti group offered customers a fixed interest rate of 8.75% for a period of two to three years, with the developer covering the balance interest.