While no one has been able to predict how the housing sector in the city will shape up in future, real estate experts feel that bargaining factor will play a bigger role in favour of buyers. As a result of poor demand, sellers are ready to negotiate and, in some deals, have even reduced the price of a one BHK flat by Rs 10 lakh in the suburbs.
Maruti Kadam, a broker from the western suburbs, said, “The market rates are stable now and this is the best time for buyers to purchase houses. Buyers have more bargaining power and sellers are ready to give discounts of even Rs 5 to 10 lakh from the initial price that they quote on small houses. Recently, I had closed a deal in which the builder slashed the price by up to Rs 10 lakh for a one BHK flat. The market price of a one BHK in that particular project varies from Rs 80 lakh to one crore. But the builders fear that there are not many buyers, and there is much to sell, which is what makes them negotiate to sell a one BHK for Rs 60-70 lakh.”
Pramod Mandadkar, another broker from the western suburbs, said, “There are targets that the builders are supposed to meet and, hence, they are negotiating. There are times when builders also give freebies like zero stamp-duty for genuine buyers.” He also added that there are very few genuine buyers in the market. In this case, he added, builders have no other option other than negotiating. “This discount is not surprising because there are no investors in the market, which is why even I negotiate when it comes to brokerage,” Mr Mandadkar further said.
A report by JLL India, a real estate consultancy, published this month has also underlined the low demand in residential market in Mumbai. The report says, “The Mumbai residential market continued to witness a fall in demand on the back of sluggish market sentiments. New launches also recorded a fall in the month of August.”
Earlier another report released jointly by developers’ body Confederation of Real Estate Developers Association of India and JLL India said that there are no takers for over Rs 2,400 crore of ready flats in Mumbai region.