The Property market in Mumbai has finally bent down to the recession in the Global Economy downturn. Leading developers in Mumbai and its Sub urban areas are offering discounts up to 30%.
Till last week, these developers tried to lure in buyers by giving various incentives. Some offering parking space, some offering a Free Television, Fridge, Computer, Laptops and what not! Since the buyers are aware of the high margin the developers are charging and the fact that recession is on their heads, they are playing safe waiting to get the lowest possible cost to by a new Home… err. Flat.
Buyers are aware of the market conditions and feel that the prices could be up to 50% cheaper than the current prices. The Government’s bail out did not help any one and it is still to get any market reaction.
Buyers are not just looking for cheaper loans; they also want to pay less per square feet. Hence, the whole industry is going down and soon developers would start offering up to 50% discounts.
The fact that these developers have taken a loan to build a building makes the scenario more maddening. It’s a mess. Chaos or call it anything. Recession has hit one and all.
You would have noticed that all these days all the developers were doing was building luxury flats. Only the rich can afford them and Very Higher-Middle-Class take loans to buy. Why they do not thing of a middle-middle-class person? Their greed has taken a toll on them in these troubled times.
Hope the time takes it all away and we are back to those normal days. But its good that this happened. The alarming rate at which the property prices zoomed in 2007 and 2008 has finally showing signs of coming down.