Market Dynamics May Favor Ready to Move In Property in Mumbai

There may be a shifting trend among homebuyers in Mumbai; many potential buyers looking for property in Mumbai are gravitating towards projects which are already ready to be occupied as opposed to projects that are under construction or second hand units. This is likely good news for builders in Mumbai as such a demand from buyers lets them sell existing inventory quickly which leads to faster inventory turnaround increasing cash inflows and a healthier bottom line. The new trend introduced above pervades nearly all segments of prospective homebuyers from those keen to own affordable 2 BHK flats to more affluent buyers looking for luxury flats in Mumbai. Some insiders say that things may be as good as to say that the supply of new projects in Mumbai almost perfectly matches the current demand for such properties in the city. If there is truth to the above statement then it seems like real estate in Mumbai is in a sweet spot and likely to be a boon for developers in Mumbai as well as for those buying new homes in the city.

Not many may know what it means if as it is stated the current supply of new residential projects in Mumbai is well poised for existing demand for such projects. How such a perfect relationship has been divined may not necessarily hold up hard scrutiny, yet it may not be incorrect in stating that a greater number of homebuyers in the city are currently willing to buy ready to move in flats in Mumbai than had been the case earlier. What may indicate that such a trend exists are estimates that nearly 25% of the property in Mumbai is currently either close to completion or is ready for occupation. Furthermore as prices have not appreciated over the past 3 years the homebuyer who is on the lookout for flats in Mumbai is in effect able to buy a ready to more in property today at prices which may not be considered too expensive.

Additionally one may consider the preferences of homebuyers who are more likely to purchase a ready to move in property in Mumbai as opposed to older properties as long as certain price constraints are met, which today may favor such new properties in Mumbai. What may be further good news for builders in Mumbai who eagerly wish to offload their existing stock of flats is that the current stock of ready to move in flats in Mumbai is on average only priced 10 percent higher than similar flats in the city that are under construction, an acceptable premium for buyers and one not too great to deter them from choosing to buy ready to move in property in Mumbai.

What ramification this has for property in Mumbai pertaining to the all-important consumer sentiment is still too early to tell. Thought there may be many factors to consider when purchasing flats in Mumbai it seems that in the end the consumer is more driven by sentiment and what is often heard from friends and on the street than any real sense of fundamentals which are often arcane and differ between any 2 experts. There has been a turnaround expected in property in Mumbai and all across the country for some time now, may reasons have been put forth by leaders, economists and financial wizards.

When however there is in fact a genuine upturn and an increase in consumer confidence it is likely that we would hear about the same from an expert after it has become generally well known throughout the public.