Property prices in mumbai to remain stable till june: report

Mumbai, Jan 23: Prices of residential property in Mumbai, which started to soften three months back, are expected to remain soft at least till June. That’s probably why developers continue to offer discounts and freebies to buyers though it’s unlikely, say hopeful consultants, that prices would correct sharply.

“Prices, across the city have softened by 10-15%, but since developers still have the capacity to hold on there is unlikely to be sharp correction,” says Anand Narayanan, national director (residential agency),Knight Frank India. Narayanan points out that the slight decline in prices isn’t seen on the brochures, but is the result of some tough bargaining.

A Bank of America Merill Lynch report, dated January 18,2012, points out that discounts of between 5% and 8% are there for those asking, depending on where one is buying a home. It says developers today are absorbing pre- EMI(equated monthly installments) interest and are not charging the usual premium for higher floors.

“Significant discounts are also available to groups or those who make advance payments. We continue to believe that developers will oblige with further discounts of 15-25% as volumes continue to dip in first half of calendar year 2012,” the report states. 

Source: IndianRealtyNews.com