Far from dropping rates, exhibitors at MCHI expo raise prices by 10-25%.
“We are prepared for a frosty festive season and a Black Diwali,” said Boman Irani, secretary, Maharashtra Chamber of Housing Industry (MCHI).
Coming from a man who represents the umbrella body of developers in the metropolis — that too on the inaugural day of MCHI’s exhibition — these words are symbolic of the sense of dissatisfaction that prevails in the real estate sector.
“We have an upright chief minister and a committed bureaucracy; the problem is that the CM is not doing any work,” said Irani, adding that new approvals have been frozen not only in Mumbai, but also in neighbouring civic bodies like Mira-Bhayandar and Thane.
The direct fallout from this slowdown in creation of new housing stock is a rise in the prices of existing projects.
Never mind the dwindling business volumes, far from dropping prices to woo the homebuyers, the exhibitors at the MCHI exhibition have gone ahead and effected a 10%-25% hike in rates, sweetening the blow with a token discount for spot bookings.
For instance, Piramal Sunteck is quoting a rate of Rs7,200 psf for its project in Airoli-where the prevailing market rate is Rs 6,000 per sq ft, and offering a discount of Rs 350 per sq ft for on-the-spot bookings.
“The rates are a reflection of the market condition,” said an executive at the Piramal stall. The builders are confident that sooner or later the homebuyers will have to buy at the prevailing prices.
More than an attempt to offload piled up stocks, the grand scale of the MCHI exhibition looks like a show of strength on the part of the city’s developers — and who better to start with than minister of state for housing Sachin Ahir, who felt compelled to make the right noises after inaugurating the exhibition.
“We are aware of the concerns around the new DC rules and the necessary policy clarifications will be made soon,” said Ahir, adding that he was working closely with the CMO to address the concerns of the real estate sector.
Never mind the firm bookings, in terms of footfalls, the exhibition looks like a huge success, with scores of potential homebuyers queuing up for entry by afternoon on Dussehra.
On their part, more than 100 leading developers are showcasing over 15,000 properties across price bands and geographical locations during the four-day exhibition.
“We have endorsed a code of conduct for all our members to adhere to ethical business practices, ensuring homebuyers of a truly transparent and trustworthy deal at any of the stalls at the exhibition,” said Paras Gundecha, president of MCHI.
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