Leading Developers Cut Premium Property Prices By 15 Percent

Bangalore: Mumbai home buyers now have a reason to rejoice. Top notch builders like Indiabulls Real Estate and Lodha Group, to name a few have started decreasing premium property prices by upto 15 percent in Mumbai’s Lower Parel area.

To attract buyers as well as to increase sales in this sluggish real estate market, leading developers are launching their luxury residential projects at around 25,000 per square feet, earlier which was in the price range between 28,000-30,000 per square feet, reports Kailash Babar of Economic Times.

"For Lower Parel residential properties, a price point of around 25,000 per sq ft is not a bad offering, it's competitive; especially when some other properties in the extended vicinity are still going at around 28,000-30,000 per sq ft," said Om Ahuja, CEO of residential services at Jones Lang LaSalle India.

According to market experts, prospective home buyers who were waiting for the price correction can now buy premium projects of leading developers at lower price tags as developers are in a hurry to clear their unsold inventories.  

Moreover, there is another reason for the prices to come down. In Mumbai's central-most part, the major land parcel owners are developers like DLF, Indiabulls and Lodha. But with the emergence of several other developers who are launching commercial and residential projects, the supply has exceeded resulting in drop in property prices.

However, developers are coming up with several strategies to sell their projects in the slow market to attract home buyers.

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