Market Dynamics May Favor Ready to Move In Property in Mumbai

There may be a shifting trend among homebuyersin Mumbai; many potential buyers looking forproperty in Mumbai are gravitating towardsprojects which are already ready to be occupied asopposed to projects that are under construction orsecond hand units. This is likely good news forbuilders in Mumbai as such a demand from buyerslets them sell existing inventory quickly whichleads to faster inventory turnaround increasingcash inflows and a healthier bottom line. The newtrend introduced above pervades nearly allsegments of prospective homebuyers from thosekeen to own affordable 2 BHK flats to moreaffluent buyers looking for luxury flats in Mumbai.Some insiders say that things may be as good as tosay that the supply of new projects in Mumbaialmost perfectly matches the current demand forsuch properties in the city. If there is truth to theabove statement then it seems like real estate inMumbai is in a sweet spot and likely to be a boonfor developers in Mumbai as well as for thosebuying new homes in the city.

Not many may know what it means if as it isstated the current supply of new residentialprojects in Mumbai is well poised for existingdemand for such projects. How such a perfectrelationship has been divined may notnecessarily hold up hard scrutiny, yet it may notbe incorrect in stating that a greater number ofhomebuyers in the city are currently willing tobuy ready to move in flats in Mumbai than hadbeen the case earlier. What may indicate thatsuch a trend exists are estimates that nearly 25%of the property in Mumbai is currently eitherclose to completion or is ready for occupation.Furthermore as prices have not appreciated overthe past 3 years the homebuyer who is on thelookout for flats in Mumbai is in effect able tobuy a ready to more in property today at priceswhich may not be considered too expensive.

Additionally one may consider thepreferences of homebuyers whoare more likely to purchase a readyto move in property in Mumbai asopposed to older properties aslong as certain price constraintsare met, which today may favorsuch new properties in Mumbai.What may be further good newsfor builders in Mumbai whoeagerly wish to offload theirexisting stock of flats is that thecurrent stock of ready to move inflats in Mumbai is on average onlypriced 10 percent higher thansimilar flats in the city that areunder construction, an acceptablepremium for buyers and one nottoo great to deter them fromchoosing to buy ready to move inproperty in Mumbai.

What ramification this has forproperty in Mumbai pertaining tothe all-important consumersentiment is still too early to tell.Thought there may be many factorsto consider when purchasing flatsin Mumbai it seems that in the endthe consumer is more driven bysentiment and what is often heardfrom friends and on the street thanany real sense of fundamentalswhich are often arcane and differbetween any 2 experts. There hasbeen a turnaround expected inproperty in Mumbai and all acrossthe country for some time now,may reasons have been put forth byleaders, economists and financialwizards.

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.