Decreasing holding capacity has led city-based builders to bring down prices of homes in the city to propel demand among potential home buyers in an abysmally dull market. Though a decent number of builders have come forward to slash prices, they are shying away from admitting it. However, experts are optimistic that more builders would be forced to follow the trend as the property market is facing its worst ever crunch.
Builders like Lodha and Godrej took the lead in slashing prices, forcing other builders to rethink and jump on to the bandwagon.
According to insiders, builders RNA Corp recently slashed rates from `12,000 per sq. ft to `9,000 per sq. ft for its projects coming up at Kandivali (west) and Goregaon (east). Naman Developers also reduced its price from `25,000 per sq. ft to `21,000 per per sq. ft in the commercial segment, which is coming up at Lower Parel. However, Kiran Jaitle, marketing head of Naman Developers denied the move of reducing home prices.
According to a broker who deals with many builders, “Ahuja Builders launched its project with a rate of `13,000 per sq. ft at Oshiwara in its saleable part of an SRA project, but one can book in this project at a rate of around `11,000 per sq. ft now. Rajesh Builders and Parinee Developers (in IC Colony, Borivali) have also cut the rates in their projects.”
Yashawant Dalal, president of Estate Agent Association of India (EAAI), who does brokerage for top builders in Mumbai, said, “Currently, builders are upset due to the low cash flow, and so they have reduced the prices by up to 10 to 25 per cent to meet the requirement of running projects.” He further added, “Recently, I brokered a deal for a Worli-based project at the rate of `25,000 per sq. ft, which was earlier `35,000 per sq. ft.”
“It’s all about finding the right price at the right time. This is the right time to cover the liquidity crunch and builders are doing it, which is good for all,” said Anand Gupta, general secretary of Builders Association of India.