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Mumbai Real Estate is going through an exciting phase in 2023

Posted by squrefeet2022 on April 25, 2023
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We have been getting asked the following questions regarding the market;

  1. Is there something called “over supply,” as 11,000+ projects are underway?
  2. Will Housing Loan rate of interest, increase or decrease?
  3. Will the price of the property come down?
  4. How does one choose the best from this overwhelming inventory?

Let’s make it simple and understand ground realities.

Yes, there are 11,000+ projects in progress across Mumbai, led by Borivali with 900+ projects, of them, hardly 10% projects are Greenfield Developments while rest 90% of the development is divided in 4 categories – 1) Self Redevelopment 2) Private Redevelopment 3) Mhada Redevelopment 4) Slum Redevelopment.

Most of the Redevelopment Projects do not have more than 40% inventory for sale, so if you look at the overall picture, only approx. 55% of the total inventory are for sale.

Secondly, after the tremendous sale in luxury segment, majority of the developers started planning spacious apartments in all larger plots.

Of all the enquiries received, more than 65 to 70% enquiries are for affordable and mid-income segments, where you will find only 60% projects.

Ready inventory in the market today out of 11,000 projects is hardly 5%, where in the choice is limited and price is 60% more than what it was in the year 2020.  This makes projects harder to sell as compared to 2020.

Other reason for customers to hold back;

  • Higher EMI makes the home of his choice above his budget.
  • I feel it is poised now, it’s for the developers to bring some innovation & attractive product and price.
  • Due to the global crisis, it is difficult to predict the near future of the interest rate.

Other Important Questions Answered

What exactly is happening? Are people buying more homes in the affordable category?

Post pandemic, we have seen that the people’s aspiration for bigger houses has increased. In new projects which are being launched, 1 BHK, 2 BHK sizes have been slightly increased from what it used to be earlier. Pre-pandemic, the sizes of apartments had really squeezed quite a lot and that is where the demand really got impacted. During the pandemic, people realised that they need bigger houses and the new launches came up with bigger size apartments.

So, the question is that, whose projects sells faster? Through my personal experience, I feel that, whichever Developer values the customer’s perspective and follow the 6 P’s, will lead in selling their projects as the Customers expect these 6 P’s from a Perfect Developer – Planning, Price, Performance, Payment Plan, Parking, Personal Touch with the customers.

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