Premium residential property prices built by major developers in Mumbai, till now relatively shielded from the recession, have fallen by 25-40 per cent.
Large builders and developers including HDIL, Mahindra Lifespaces and Runwal Group are now ready to renegotiate prices, and throw in a few goodies in the bargain.
Mahindra Lifespaces, the real estate and development arm of the Mahindra Group, is offering 10 per cent flat discounts on its property in Bhandup, an upmarket Mumbai suburb.
The company, which has close to 500 apartments in the housing complex, has also tied up with celebrity interior designers, at a fee that is ‘negotiable’, the company’s president, Pavan Malhotra, told Hindustan Times.
"The sentiment is low at the moment," Malhotra said. "We think the way to stimulate demand is to offer discounts," said Sandeep Runwal, director, Runwal Group, a real estate developer in Mumbai. "And in various locations in Mumbai, this is working."
Mumbai’s real estate scene has seen correction in prices in certain localities, with Central Mumbai prices plummeting by up to 40 per cent in certain areas, Malhotra said.
Akruti City, which has ready properties in Mumbai suburbs, is not cutting prices but the area. Floor area of apartments that would earlier go for Rs 60-80 lakh is being reduced by 25-30 per cent. The price then is brought down to the Rs 30-40 lakh price range.