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« HDFC Deducts Interest Rates on Home Loan for New Borrowers | Home | 9 SEZs Get Govt Approval »

Prices Down but Buyers Not Interested

Residential properties in areas such as Dahisar, Mira Road, Vasai and Virar are slowly becoming affordable for the middle-class, as real estate developers, for the first time, have started bringing down property rates. “The prices have come down by 10-15%, and most developers are willing to bargain for a cheaper rate,” admits a real estate developer, who was participating in the three-day property exhibition in Kandivli that began on Saturday.

Real estate in places beyond Dahisar did not enjoy the same boom that swept Navi Mumbai over the last five years, mainly because of lack of infrastructure, water supply and power shortages. “But over the last two years, prices rose due to the boom in the economy, and even in areas like Virar and Vasai the property rates went up by 25-30%,” said Sanjay Thakker of Aangan properties. But though this trend has begun to reverse, few people are biting. Buyers are opting for the wait-and-watch approach. “We feel that property prices, especially in areas like Borivli and Kandivli are still very high. Developers should realise that the economy has slowed down, and if they want to sell their flats, they need to reduce their rates,” said Borivli resident Pradeep Kumar who was one of the few visitors at the fair.

In an attempt to woo potential buyers, developers are giving away freebies like cars, LCD TVs, modular kitchens, refrigerators and washing machines along with sale of every apartment. “We are giving buyers the option of taking home a car, or alternatively, offering a reduction of Rs 200 per sq ft for the sale of every flat at the residential project that near Thakur Mall, Dahisar,” said an official with Chamunda Developers. Virar-based builders, Tirupati Constructions, are offering free stamp duty and registration, a modular kitchen and an LCD colour TV to the first 25 buyers, at its upcoming project in Virar. “We have kept the rates at around Rs 17.30 lakh for a two BHK flat,” said an official with Tirupati Constructions.

Market watchers welcome the move. “In such times, builders should think out of the box as regular pitches may no longer work. They should provide better amenities, and sweeten the deal with competitive rates,” said Anuj Puri, chairman, Jones Lang Lasalle Meghraj.

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