T
he Mumbai real estate market is witnessing a shift in pricing strategies as developers adopt aggressive tactics to lure buyers. With housing sales moderating and unsold inventory piling up, some developers are scrapping floor-rise premiums altogether and offering uniform pricing across all floors. This trend of 'No Floor Rise' has gained momentum, particularly in high-rise projects where supply is abundant.

    Even Grade A developers are eliminating floor-rise charges to stay competitive, while Grade B developers who previously relied on these charges for revenue are now adjusting their marketing strategies. In contrast, Delhi-NCR continues to charge Preferential Location Charges (PLC) for upper-floor units, with buyers often paying a premium for apartments on higher storeys.

    Developers say that floor-rise premiums help offset increased construction costs and reinforce the status and exclusivity associated with elevated living. However, offering 'No Floor Rise' is an effective promotional tool, attractive to homebuyers. Several developers have experimented with this strategy, resulting in a 25% boost in sales for their projects.

    The oversupply of high-rise inventory in Mumbai and intense competition among Grade A developers have prompted many to eliminate floor-rise premiums. As a result, mid-tier (Grade B) developers are reversing their marketing strategies and adopting more buyer-friendly pricing models to stay competitive.

    While the elimination of floor-rise premiums is an emerging trend, developers agree that exceptional views continue to command a premium in Mumbai's competitive market. Apartments on higher floors with breathtaking vistas attract higher prices compared to mid-level units.