Is Mumbai’s Real Estate Market Cooling Down? A Homebuyer’s Guide to Negotiation & Opportunities

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Are Mumbai Real Estate Prices Moderating?

Mumbai’s real estate market has been one of the most expensive in India. However, recent trends indicate that homebuyers now have more leverage in negotiating prices, thanks to a slowdown in sales and an increased willingness among developers to offer flexible payment plans.

One such buyer, Kunal Shah, recently purchased a 2BHK apartment in Mumbai’s western suburbs for around ₹2 crore. His five-year-long home search was challenged by rising property prices post-COVID-19. However, as prices stabilise, developers are offering subvention schemes—also known as buy now, pay later plans—allowing homebuyers to pay in instalments.

Flexible Payment Plans from Leading Developers

Developers such as Rustomjee Group, Hiranandani Group, Raymond Realty, Arkade Developers, and Kalpataru are offering flexible payment options across various locations like Matunga, JVLR, Vile Parle, Panvel outskirts, and Thane. Apartment prices in these regions range from ₹1 crore to ₹10 crore.

Real estate experts advise homebuyers to negotiate aggressively, considering the current demand-supply dynamics. Although developers are offering flexible payment terms, large-scale price cuts remain unlikely.

Key Factors Favoring Homebuyers

Slowed Sales: A decline in housing demand has resulted in increased inventory, prompting developers to be more flexible in negotiations.

Cash Crunch: Developers facing liquidity constraints are more open to offering discounts and payment flexibility.

Financial Year-End Sales Pressure: To meet revenue targets and service debts, many developers are eager to close deals before the financial year-end.

Secondary Market Offers More Competitive Pricing

While developers are willing to negotiate in the primary market, better deals may be available in the resale market. Investors and homeowners looking to upgrade are offering properties at more competitive prices.

For instance, in Goregaon, an under-construction project has a developer selling a 700 sq. ft. 2BHK apartment for ₹2.40 crore (all-inclusive). However, brokers are facilitating the same deal for ₹2.30 crore. In the coming months, prices might drop to ₹2.10–₹2.20 crore as investors exit the market.**

Property Registrations: Signs of Market Stabilisation

Property registrations in Mumbai have ranged between 11,000 and 12,000 per month, with occasional dips. In February 2025, 12,066 properties were registered, slightly higher than 12,056 in February 2024. This indicates a stable yet moderate growth phase, as per Knight Frank India’s report.

75% to 80% of these registrations were for properties priced up to ₹2 crore, showing sustained demand in the mid-segment category.

Will Mumbai See a Price Correction?

While home sales have slowed compared to the peak years of 2022 and 2023, major price corrections are not expected. Instead, developers are more open to negotiation.

According to Ritesh Mehta, Senior Director, JLL India, developers are reluctant to lower prices but may offer soft discounts in the coming months. The resale market is likely to present better deals, especially as some investors look to exit due to stock market fluctuations.

Developers have also started offloading inventory by being open to negotiations on ready-to-move-in units, particularly for projects with Occupancy Certificates (OC) and unsold apartments.

Real Estate Data Insights

Sales in India’s top 9 cities declined by 9% in 2024, with new supply falling 15% to 4,11,022 units (PropEquity data).

Mumbai housing sales dropped 6%, from 53,208 units in 2023 to 50,140 in 2024.

Listed developers saw a 3% decline in sales volume (Ind-Ra data), with Q3FY25 witnessing an 18% YoY drop.

Despite declining sales volume, sales value increased by 9%, indicating higher property prices.

Will a Repo Rate Cut Boost Housing Sales?

The RBI’s 25 basis points repo rate cut to 6.25% on February 7, 2025, is expected to provide some relief to homebuyers by reducing home loan interest rates. Lower EMIs may encourage more buyers to enter the market.

However, while a repo rate cut improves affordability, factors such as economic stability, consumer confidence, and supply levels will ultimately determine housing demand.

Conclusion: Should You Buy Now or Wait?

With sales slowing and developers becoming more flexible, 2025 could be a good time to negotiate property prices, especially in under-construction and resale markets.

Key takeaways for homebuyers:

Negotiate smartly: Developers are more open to flexible payment terms.

Explore resale opportunities: Secondary markets may offer better prices.

Monitor market trends: Keep an eye on upcoming launches and developer incentives.

Leverage interest rate cuts: Lower EMI costs can improve affordability.

As Mumbai’s real estate market stabilises, now is the time for homebuyers to make informed decisions and secure the best deals available.