Mumbai Flats Now at a Discount of 12 to 15 Percent

“The fact that real estate prices are showing signs of weakening suggests that the long-standing stalemate between buyers and builders is finally turning in the buyers’ favour,” added Das.

The prices have now been pressurized with the levels of absorption having stagnated and the number of inventories increased. With the realty sector facing rising interest costs and declining net profits in the last year, developers are now compelled to get the levels of unsold inventories lightened and their balance sheets deleveraged.

With the economy continuing to remain sluggish, the demand in the market will most probably remain subdued.

The largest chunk of buyers will be tapped by developers who are on the lookout for those opting to buy apartments at a price of 75 lakh.

The highest number of launches made in the last year has been found in the central suburban corridor. This area had in fact seen the highest number of unsold inventories. These micro markets will find over 35 percent of the launches this year. The guarantee of superior returns and tickets of lower sizes have begun to attract investors to the peripheral market. With the investor segment having offloaded their holdings the market has now found a significant shadow supply, said the report.

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