There has always been steady demand for 3 BHK flats in Mumbai and other types of properties across several categories in Mumbai. However, Mumbai has witnessed huge absorption of stocks over the last three years, particularly in the Mumbai Metropolitan Region. Price, positioning and product are the three key aspects which influence sales of apartments. Location and social infrastructure are other key growth drivers of the realty market in Mumbai. Several new projects have been launched in Mumbai at considerably lower prices than usual. This has been drawing new buyers in good numbers. Several of these projects are priced at anything between 15-35% lower than the usual rates or the rates of resale properties being sold in the same locations. The resale market has always witnessed this kind of traction in comparison to the mainstream property market.
However demand for 3 BHK flats in Mumbai and other configurations in the resale category have witnessed a growing decline. This is evident through the lower number of transactions. This is because of the lack of justification for higher prices in comparison to mainstream new projects. Volumes do not also support and sustain the high prices being charged. Buyer interest in the resale market can only be garnered through lowering of prices. The pricing war is currently being fought out in full throttle by the primary new property market in Mumbai. A correction of resale property prices is in order to draw buyers as the market is threatened with extinction otherwise. A higher percentage of home buyers and investors in Mumbai are now opting for spanking new launches. This is mainly because of a deep rooted to take advantage of the lower prices offered at these projects and the accompanying discounts that come with the same. Rajhans Otium is the new upcoming residential project by Rajhans which provide 3 bhk flats in Santacruz.
This is a significant development in a very costly market where purchasing simple 3 BHK flats in Mumbai is an unfulfilled dream for many. The Central and Western Suburbs witnessed the most residential launches over a sustained period of time and absorption was high owing to higher levels of demand as compared to other markets. However, resale transactions were quite minimal in these areas. Buyers are becoming increasingly conscious about prices and investors are not looking at paying hefty amounts for resale properties. Thane is just one area where both new launches and resale properties have witnessed equal demand as the difference in prices is not that much.