Know why Mumbai property prices may come down by 20% soon

Zee Media Bureau

New Delhi: Real estate developers in Mumbai may soon begin offering 20 percent discount to its home buyers as per a news paper report.

The Mid-day report said that developers can do so because of the new norm which has reduced the number of  permissions required to start a project.

The paper said that builders can now pass on the benefits to the customers because with lesser number of permissions, the overall budget will also come down.

Acording to the report by property consultant Cushman & Wakefield Mumbai has witnessed a 37 percent decline in residential unit launches, totalling 15,735 units, from the corresponding period last year with Mulund, Thane, Goregaon and Malad accounting for nearly 51 percent of the total launches during 2015.

The new launches in 2015 have been smaller in configuration, therefore, with reduced base selling prices and smaller units, the ticket size or the cost per apartment has also seen a decline in these key markets, the report said.

A majority of the new launches (83 percent) were concentrated in the mid-segment. While new launch prices have remained stable across most sub-markets, developers in the far south reduced the average weighted basic sale price in the mid-segment by 7 percent, to remain competitive.