Pragmatism To Drive Mumbai’s Real Estate Sector
Mumbai realtors are facing increasing inventory due to low demand and bad economic situation. However, the undercurrent indicates that the Mumbai property market may be heading for a revival. The festivals around the year end may herald the beginning of this new cycle.
Pragmatism to drive realty sector
Developers have went through a learning curve during this economic slowdown. Several developers have realized that they have to come out of the situation of uncertainty. Rather than coming up with new projects, some are focusing on clearing the existing inventory pile up. As a result, the Mumbai real estate market will be now expected to be driven by pragmatism.
Developers concur that the market is flat at the present but will eventually pick up. While coming up with new projects are on the cards, the immediate focus is on selling the existing inventory in order to come out of the financial crunch. In a sector such as real estate, simple freebies do not make much difference. Offers have to be lucrative in order to attract customers. Developers also agree that reduction of property prices will not be on the cards as off present.
Prospective buyers too are looking for better deals. Some buyers believe that the economic slowdown has affected the real estate market to the extent it could and the market may not be affected further. While they do not expect a price crash or correction in a city like Mumbai where there is always demand, they do feel that any improvement in the economy and sentiments will lead to price appreciation. Hence, they feel that the festival season may be the best time to negotiate good deals.
Many prospective buyers however are hopeful about some good schemes to come up during the festival season.
Developers answer buyers’ prayers
While on one end, buyers are hoping for good deals for buying houses, developers on the other are coming up with schemes and offers to make sure the housing units are sold and the inventory pile up reduces. They are using new marketing formats and strategies to channelize sales. For example, some developers are offering freebies like 100 gm of gold, parking facilities or other amenities for every home purchase. Some developers have tied up with financial institutions to provide home loans with some attractive payment schemes such as subsidized registration fees, special interest rates or waiving off an EMI installment for on-time payment.
Given that most home purchases tend to happen on auspicious days, the festival seasons usually see increase in home sales. Developers will be focused on marketing techniques for more sales to happen.
In effect, the coming festival season is expected to see less of new project launches and more of schemes and offers with a focus on clearing off existing inventory stock. Buyers too will be seen driving hard bargains to get the maximum value for money. This kind of pragmatism and buzz in the realty sector during the festival season may see the revival of the Mumbai real estate sector.
