New Delhi: Property prices in Mumbai are expected to see an appreciation of 6% in 2015, according to property advisory firm JLL India.
"Many home buyers as well as investors have been speculating about the movement of residential property prices in Mumbai. These fence-sitters are watching the market's movements keenly. Their guess is that prices could go down further in the next few months - which in turn has increased their hopes of landing a better deal for their money and delaying their purchase," said Ramesh Nair, COO - operations and international director, JLL India.
"However, the market's readings indicate that that it will start moving up later this year. An average price appreciation of around 6% is expected by the end of Q4 2015," he added.
He expects Mumbai's residential property market to start seeing "lot of buying activity in around six months, with buyers taking advantage of prevailing market conditions to get good deals. The increased market activity is expected to continue next year too."
Nair said that builders are already seeing the number of enquiries rise and expect the market to recover in the months ahead. However, it is still a buyers' market with builders offering discounts, freebies, waivers, festive offers and attractive schemes to increase sales velocity.
"In some areas, builders are offering spot discounts of up to 10% on the base price of a property to buyers who are serious about making purchases. ..
In other cases, buyers can negotiate the floor rise charges or get these waived off completely," he said.
His suggestion for buyers who are not in a hurry to move into a new house is to book in the pre-launch stage of a project and get very competitive prices. "To illustrate, booking in a pre-launch project in south Mumbai can easily translate into a discount of about 8-10%. In one of the eastern suburbs, a pre-launch project is offering a price of around Rs 8,000/sq.ft., while a completed project nearby is charging Rs 14,000/sq.ft," he said.
Several schemes are also being offered, especially in pre-launch projects. These include the popular ones like 20:80, 30:70, 10:80:10 and 5:80:15. Such schemes remain popular with many buyers, although they have to pay higher base prices as compared to buyers who opt to pay a large chunk of the capital value at the outset, he said.