Mumbai’s real estate sector has seen a slump over the last 18 months, pushing builders to adopt new measures to sell flats. A number of big real estate developers in the city are offering discounts between 15-20 per cent in a bid to attract buyers.
According to sources in the real estate sector, there are close to 1.55 lakh unsold residential units in the Mumbai Metropolitan Region (MMR) alone, with the total number touching 6.7 lakh nationwide.
Demonetisation has played a key role in the drop in sales, with potential customers playing the wait and watch game. Key scrutiny by income tax agencies in addition to the fear of being caught with black money has resulted in decreased transactions.
Falling property rates haven’t boosted sales, with developers resorting to innovative means to get rid of inventory. One developer is offering a free flat in Alibaug on the purchase of a flat in Chembur, making it a great one-plus-one deal.
Similarly, Tata Housing is offering cashback to the tune of Rs.10 lakh on certain projects. Others are offering flats at special launch rates, with some of them going to the extent of providing international trips to woo buyers.
Another factor deterring buyers is the increase of ready reckoner or RR rates. These rates indicate the value of a property, with all computations based on this. The Maharashtra government recently increased this to 3.45 per cent, making it harder on the pocket of buyers. While the purpose of the government was to increase stamp duty collection, it has led to reduced sales.
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