Royal Palms Estates slashes prices by 40% in Mumbai

Royal Palms Estates slashes prices by 40% in Mumbai
Business Standard, August 4, 2009, Page 4

Rajesh S Kurup / Mumbai

Housing in the city has become a bit more affordable, with Royal Palms Estates slashing prices of prime properties in the western suburbs by up to 40 per cent.

This follows a similar move by other realtors, including Housing Development & Infrastructure, Puravankara Projects, Omaxe, Tata Housing Development and even the state government, all of whom have either reduced prices or forayed into affordable housing, following a slump in demand.

According to an analyst, this would have an impact on overall property prices in the city, with other real estate companies expected to follow suit. The monsoon being a dull season, builders come up with such offers till September.

Royal Palms Estates has begun offering ready to possess apartments at Goregaon, a north-western suburb, for Rs 3,999 a sq ft (PSF). This is lower by around 40 per cent compared with the prevailing property rates of around Rs 5,500-5,700 PSF.

When spoken to, Royal Palms Estates’ joint managing director Dilawar Nensey confirmed the development. “There is still a price resistance in the market, and traditionally the monsoon is a slack period for property sales. A number of bargain hunters surface during this season and take quick decisions if they find a property worth acquiring, either for personal use or for investing,” Nensey said.

More important, Royal Palms Estates needs to generate funds for future plans and is doing so by disposing of existing properties. It’s better to sell at discounted prices, rather than holding on to it, he added.

Royal Palms is setting up two Special Economic Zones (SEZ) at Goregaon – one for information technology and another for gems and jewellery – and needs funds for these projects.