Buy now, pay later scheme takes centrestage this festive season in Mumbai

Prices remain steady as demand softens in Mumbai real estate market?

Over the last four years, the Mumbai real estate market has witnessed an increase in sales of residential properties, accompanied by surge in launches.

This growth can be attributed to the Maharashtra government’s announcement in January 2021 wherein it waived 50% of the amount that developers had to pay to obtain permissions. In lieu of the benefit, developers had to absorb the stamp duty on behalf of homebuyers.

“These offers by the government and real estate developers helped the real estate projects pick up steam in 2022 and 2023. It’s now been a year since developers have reintroduced subvention schemes, also known as flexible payment options. This may be because they want to keep up the sales momentum,” said a real estate broker, not wishing to be named.

The softening in demand has also ensured that price rise remains steady, at least for mid size and small developers. Listed and branded developers, on the other hand, continue to increase prices, said experts.

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“Listed developers have increased prices this year but mid-sized and smaller players have kept prices steady. Of the total primary sales (sales in new buildings), around 60% to 70% are by listed or branded players and 30% to 40% are by smaller and mid sized players. This has gained ground in the last six months or one year as homebuyers now trust branded and listed developers more,” Mehta added.

“At our under construction project in Chandivali, where the market rate is around ₹30,000 per sq ft this year, we have decided to offer 1 BHK and 2 BHK for ₹1.15 crore and ₹1.69 crore, respectively, said Mumbai-based developer Manju Yagnik, vice chairperson, Nahar Group and senior vice president, NAREDCO West, an apex body of real estate developers.

“We are ensuring that prices remain stable this year. We are expecting a good response, especially since our project will be ready-to-move-in soon,” Yagnik added.

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Delhi NCR developers also expect sales to pick up during Ganesh Chaturthi 2024

Real estate developers in Delhi NCR also expect sales to pick up this festive season.

“Most buyers invest in residential properties during Ganesh Chaturthi. Developers provide several offers during the festive season,” said Mohit Kalia, vice president- sales and marketing, Raheja Developers.