Troubled by weak home sales, now the developers in Mumbai are launching their new projects at lower rates. This move of the builders is seen by the investors as a best time to invest in Mumbai.
The new projects in Mumbai are offered at lower rates. Though the developers are forced to cut down the prices, the move provides the investors a better chance to reap better.
If the existing prices in Lower Parel area are Rs.28000 per sq. ft. now, the new projects are launched at Rs.25000 per sq. ft. This means that the new projects are offered with rate reduction of 15%. This provides a chance to the investors.
The main thrust of this move is to find takers for their new projects. According to a report by realty market researcher Liases Foras, home sales in Mumbai have risen by a mere 1%. On the other end, the prices have shot up by 3%.
This rise in the property prices has driven away the takers. So by reducing the prices, the developers hope that they will come back. This is what prompted the developers to launch their new projects after cutting the prices down.
Though the main aim of this move is to find takers, reports show that this also has boosted the sentiments of the investors. If the investors are coming forward, there will be an improvement in the home sales.
In fact, the developers are also looking forward to gaining some investors for their new projects. If they gain some investors also, they will be able to survive in the situation.
Due to the increasing number of unsold properties, most of the developers are debt-driven. Now they can reduce the debt if they find some investors.
The developers seem confident that they can find some investors for their new projects, by reducing the property prices.