The festive season in Mumbai, traditionally a period of heightened real estate activity, started with a subdued note. Data from Knight Frank India reveals a 10% decline in property registrations during the Ganesh festival compared to the same period last year.

Macroeconomic Moderation Impacts Sentiment

Experts attribute this dip to slowing growth in some key economic indicators, suggesting a potential moderation in the overall economy. While housing demand remains fundamentally strong, factors like the high base effect from last year's festive season may have contributed to the decline.

Mixed Signals From Other Cities

Data from PropEquity also paints a mixed picture across other major Indian cities. While Delhi NCR and Navi Mumbai saw increased sales in Q3 FY24, cities like Hyderabad and Bengaluru experienced declines, raising concerns about the overall market sentiment.

Developers Remain Optimistic

However, developers maintain a positive outlook, especially for projects nearing completion. Ready-to-move-in properties continue to attract strong demand, indicating a preference for immediate possession.

Flexible Payment Plans Gain Traction

In an attempt to boost sales, developers are actively promoting "buy now, pay later" schemes and flexible payment plans. These offerings aim to entice buyers by allowing them to make purchases with minimal upfront payments.

Conclusion:

While the initial festive season sales figures in Mumbai show a slight dip, the overall sentiment in the real estate market remains positive. Experts anticipate a rebound in demand as the festive season progresses, driven by factors like a potential policy repo rate cut and attractive offers from developers. The market's future trajectory will likely depend on how the broader economy performs and how developers adapt to changing consumer preferences.

-source: hindustantimes.com