Thirty-nine-year-old Kunal Shah recently purchased a 2 BHK apartment in Mumbai’s western suburbs for around ₹2 crore. His home search began nearly five years ago, following the COVID-19 lockdown. However, by the time he secured the necessary funds, property prices in Mumbai had risen significantly, making the purchase more challenging.
Mumbai real estate market shows signs of moderation, prospective buyers are now in a stronger position to negotiate property prices, experts opine. (Mehul R Thakkar/HT)
However, as the Mumbai real estate market shows signs of moderation, prospective buyers are now better positioned to negotiate property prices. To stimulate demand, developers are increasingly offering subvention schemes—also known as buy now, pay later, or flexible payment plans—which allow homebuyers to pay in instalments.
Several developers, including Rustomjee Group, Hiranandani Group, Raymond Realty, Arkade Developers, and Kalpataru, are currently offering flexible payment plans for homebuyers in the Mumbai Metropolitan Region (MMR).
These projects are spread across key locations such as Matunga, JVLR, Vile Parle, Panvel outskirts, and Thane, with apartment prices ranging from ₹1 crore to ₹10 crore.
In this market, real estate experts advise homebuyers to negotiate aggressively while considering the demand-supply dynamics in their preferred locations. While developers are offering greater flexibility in payment options, experts caution that significant price cuts remain unlikely.
Do homebuyers have more room for negotiation?
There are three key factors giving homebuyers leverage in negotiations: slowed sales, a cash crunch due to lower liquidity, and the end-of-financial-year rush, with developers eager to close sales to service debt and meet financial targets.
Buyers struggling to secure deals in the primary market may find better opportunities in the secondary (resale) market, where investors and homeowners looking to upgrade often offer competitive prices, experts suggest.
For instance, in an under-construction project in Goregaon, a developer is selling a 700 sq. ft. 2BHK apartment for ₹2.40 crore (all-inclusive), while a broker is facilitating the same deal for ₹2.30 crore. In the coming months, as investors look to exit, prices could drop further to around ₹2.10– ₹2.20 crore, according to a Goregaon-based real estate consultant.
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Here’s what homebuyers should know
According to consultants, the number of developers offering subvention schemes, such as buy now and pay later plans, has steadily increased. However, homebuyers should remember there is room for negotiation with real estate developers.
“There are three key reasons developers are more open to negotiation right now,” said Ashish Boria, a real estate consultant based in Borivali. “First, sales have slowed down; second, few developers facing a cash crunch due to the reduced sales volume; and third, with the end of the financial year approaching in March, many developers are eager to close deals to service debt and demonstrate sales figures to banks and investors. Keeping the demand-supply dynamics of the area in mind, homebuyers can secure favorable deals by negotiating effectively.”
Boria also emphasized that if buyers struggle to find suitable options in the primary market, they should consider exploring the secondary market. “There are plenty of opportunities in the resale market, where investors and those looking to upgrade their homes may offer attractive deals,” he added.
Why is the Mumbai real estate market witnessing moderate property registrations?
Over the past year, property registrations in the Mumbai real estate market have generally ranged between 11,000 and 12,000 per month, with notable exceptions in September and November 2024, when numbers fell to between 9,000 and 10,000.
Experts highlight that property registrations in Mumbai have stabilised, with growth showing signs of moderation.
In February 2025, Mumbai recorded 12,066 property registrations, slightly higher than the 12,056 registrations in February 2024. Despite the overall slowdown, this marks the second-best performance for the city in February in terms of property registrations, indicating a phase of stabilisation, according to Knight Frank India, a leading real estate consultancy, in its monthly property registration report.
However, the report added that registrations have consistently remained above 10,000, significantly higher than pre-pandemic levels.
“The Mumbai property market has consistently recorded over 11,000 properties per month; however, the rate of growth has moderated,” said Shishir Baijal, chairman and managing director, Knight Frank India.
According to Knight Frank India data, 75% to 80% of property registrations in the Mumbai real estate market are for properties valued up to ₹2 crore.
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Will prices correct due to slowdown in sales?
According to developers and property consultants, sales in the Mumbai real estate market have slowed down compared to the robust demand seen during the bull run of 2022 and 2023.
As a result, developers are sweetening the deal by offering flexible payment plans and negotiating prices. However, experts do not anticipate major price cuts.
“I wouldn’t say there’s a significant slowdown in sales or major price reductions, but developers are more open to negotiation on a case-by-case basis if homebuyers are serious about booking,” said a Mumbai-based real estate developer from the eastern suburbs. “Both small and large developers are willing to negotiate because sales have slowed. However, the potential for negotiation depends on several factors.”
He further explained, “In areas where new launches are limited and demand remains high, homebuyers may not have much room to negotiate on pricing. Ultimately, pricing negotiations can be complex and are influenced by multiple factors.”
Consultants believe one reason for the slowdown in sales is that developers are holding firm on increased prices. However, they do not anticipate a major price correction in the market.
“A price cut is not something to expect right now, but homebuyers may see some softening in the coming months,” said Ritesh Mehta, Senior Director and Head (North and West), Residential Services and Developer Initiative, JLL India.
“Sales growth may have softened recently, partly because developers are reluctant to lower prices. While homebuyers await a correction, significant price drops are unlikely due to the demand-supply balance, even with new launches driven by redevelopment projects. However, the resale market may present good deals as some investors look to exit, particularly in response to stock market performance—a trend that could gain momentum over the next year or two,” Mehta added.
Consultants note that developers have started offloading inventory by becoming more open to negotiations, even for ready-to-move-in units, rather than holding firm on prices.
“Earlier, developers had multiple offers from homebuyers. However, with rising prices, the pool of genuine buyers has shrunk. Some developers are now willing to negotiate, particularly for OC-ready buildings and unsold apartments. Negotiation happens across both macro and micro locations, but the extent depends on the inventory available in a specific project,” said Ravi Kewalramani, director at RK Mumbai Realtors.
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Here’s what data by real estate consultancies indicates
According to the data shared by real estate data analytics firm PropEquity, the residential real estate market in India’s top 9 cities saw a marginal 9% decline in sales to 4,70,899 units in 2024, while new supply fell by 15% to 4,11,022 units.
In the Mumbai real estate market, housing sales dropped by six per cent from 53,208 units sold in 2023 to 50,140 units in 2024. While sales decreased, the number of launches increased by four per cent in 2024, according to the data.
Further, according to data shared by India Ratings and Research (Ind-Ra) on Tier-1 listed real estate players, residential sales volume declined by three per cent in terms of area sold in the first nine months of the ongoing financial year. In Q3FY25, it fell down by 18% on a Year-on-Year (YoY) basis.
According to the data, sales value, on the other hand, increased by 9% in the first 9 months of FY25, owing to higher property prices.
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Will housing sales improve if there is a further reduction in Repo Rate?
Under the new governor, Sanjay Malhotra, the RBI announced a 25 basis point repo rate cut to 6.25% on February 7 for the first time in nearly five years. The reduction is expected to relieve existing homebuyers by helping lower their equated monthly instalments on home loans and ignite overall homebuying sentiment.
The recent reduction in the repo rate by the Reserve Bank of India (RBI) has also raised expectations that housing sales may see a boost. Lowering the repo rate can reduce home loan interest rates, making housing more affordable for prospective buyers. This could incentivize more people to enter the real estate market, especially first-time homebuyers, who might find financing options more attractive.
Also Read: A 100 bps repo rate cut in the next one year could boost affordable housing, says NAREDCO chairman
However, while reducing the repo rate can stimulate demand, the overall impact on housing sales will depend on several other factors, including consumer confidence, economic stability, and affordable housing options. Market experts suggest that while the rate cut could provide some relief, it may not necessarily result in a significant surge in sales if other economic challenges persist.
