Mumbai real estate value to go up six percent: Report

Contrary to speculation among buyers and investors that housing property prices may further dip in the city, global real estate firm JLL India hinted that these would appreciate six percent this fiscal (2015-16).

"Our reading of the market, however, indicates that residential prices across the city would start moving upwards from second half of FY 2016," JLL India chief operating officer Ramesh Nair said in a statement here on Thursday.

Observing that the residential property market would see buying revive in the next six months, Nair said buyers would, however, look for good deals by taking advantage of the prevailing subdued market conditions.

With enquiries for residential property rising, builders hope the market would recover in the coming months, though many of them are wooing potential customers by offering discounts, freebies, waivers and attractive schemes to book orders.

"In some areas, builders are offering discounts up to 10 percent on the base price of a property to buyers who are serious about making purchases," Nair asserted.

Other buyers can negotiate the floor rise charges, get them waived off by the authority concerned or those who are not in hurry can book a flat of his choice at the pre-launch stage of a project at competitive prices.

"For instance, booking a flat at project stage in south Mumbai translates into 8-10 percent discount. In a eastern suburb, apartments are offered at Rs.8,000 per square feet at pre-launch stage while a ready-to-occupy flat would cost Rs.14,000 per square feet," Nair pointed out.

A study by the Indian subsidiary of Jones Lang Lasalle (JLL) revealed that the pre-launch stage schemes' were popular as buyers would have to pay only a small percentage of the total amount and get a risk-free investment opportunity.

"The schemes also enable developers to woo buyers and cover the interest rate they (customers) have to pay to banks on housing loans," Nair added.

For investors who are bulk buyers and prefer square feet areas than units to sell before or soon after taking possession are given special deals at prices ranging from Rs.18,000-20,000 square feet in south Mumbai areas like Lower Pare and Worli as against the current market price of Rs.30,000 square feet.

Interestingly, new locations in peripheral areas such as Ulwe, Kamothe, Karanjade and Dronagiri in Navi Mumbai command better price appreciation than in established locations, thanks to the upcoming international airport in Navi Mumbai and the Mumbai trans harbour link.