Mumbai real estate

A report by brokerage house JM Financial at the back of a bi-annual property expo Of MCHI, highlights that even innovative discounts will not help boost residential property sale in Mumbai this year as the prices are much higher & beyond the reach of end buyers.

The firm says the subvention schemes, stamp duty/floor rise/maintenance bill waivers or freebies like iPhone or holiday trips offered by developers form only 1-5 percent of the property value, which is insignificant in altering purchase behaviour. The report notes that discounts available on execution of deal (10 – 15 percent) remain a preferred way of giving discounts than a cut in declared property rate.

The MCHI property exhibition had 150+ developers participating in it, covering more than 300 projects. Based on the visit to developers in the exhibition, the report notes that the pricing had been maintained. The Mumbai Metropolitan Region (MMR) witnessed a marginal (1 percent) decline in pricing over last year. A Few areas like Kalyan, Virar, and Dahisar saw material price correction while no change was seen in other regions.

Furthermore, the inventory is mounting in Mumbai. The unsold houses are at a 50 month high.

Image Credits: DNA

Usually, the builder community refrains from any protest against the government. However, on October 13, Maharashtra Chamber of Housing Industry (MCHI) and its associate organisations held a peaceful march to show their disapproval & express solidarity on the recent suicide of Thane-based developer Suraj Parmar.

Most of the construction sites and offices belonging to developers were closed on Tuesday. Even architects and real estate agents participated in this protest.

Parmar, the President of MCHI-Thane  was purportedly fed up of the corruption in the system & the resultant delays in project completions. Apparently, he had named the elected representatives & the architects responsible for the suicide but fearing troubles for his Family later, they were removed.