Amid slowing sales and a growing inventory pile-up, Mumbai’s real estate developers are taking bold steps to attract potential homebuyers. From scrapping floor-rise premiums to introducing innovative payment plans, the industry is witnessing a noticeable shift in pricing strategy. Once a staple in high-rise apartment sales, floor-rise premiums are now being waived by many developers in the Mumbai Metropolitan Region (MMR), marking a new chapter in the city’s dynamic property market.
Why Developers Are Dropping Floor-Rise Premiums
High Inventory and Sluggish Sales
With unsold inventory rising and sales momentum cooling, developers have been forced to rethink their approach. Traditional tactics are giving way to more aggressive promotions aimed at converting interest into transactions.
- Property registrations in May 2025 dropped by 4% year-on-year, signaling buyer hesitation.
- Despite this, stamp duty collections rose by 3%, indicating continued activity, though possibly skewed toward higher-value properties.
Emergence of ‘No Floor Rise’ Strategy
In an effort to remain competitive, both Grade A and Grade B developers have adopted a uniform pricing model across floors. This is a major shift from the long-standing norm of charging a premium for higher levels.
- Floor-rise charges in Mumbai typically ranged from ₹100 to ₹500 per sq ft.
- Developers cited construction cost differentials and better views as justifications for the premium.
But this strategy is losing ground. Even reputed developers like Paradigm Realty and Dosti Realty have introduced limited-period ‘No Floor Rise’ offers, resulting in 25% sales spikes in certain projects.
Quick Highlights
| Aspect | Key Details |
|---|---|
| Floor-Rise Premium (Earlier) | ₹100–₹500/sq ft for higher floors |
| Current Trend | Uniform pricing across floors (‘No Floor Rise’) |
| Impact on Sales | 25% sales boost in some projects (e.g., Chembur, Borivali) |
| Property Registrations (May 2025) | 11,565 (↓ 4% YoY) |
| Stamp Duty Collection (May 2025) | ₹1,062 crores (↑ 3% YoY) |
| Strategy Examples | Buy Now, Pay Later; Subvention Plans; No Floor Rise |
| Buyer Preferences | Premiums still paid for exceptional views (e.g., sea-facing, skyline views) |
Developer Insights & Market Sentiment
“Offering ‘No Floor Rise’ is an effective promotional tool, attractive for homebuyers. We saw a 25% boost in sales for our Chembur and Borivali projects after introducing this strategy.”
— Parthh K Mehta, CMD, Paradigm Realty
“Although the demand in MMR is still strong, promotions like these inject vibrancy into the sales cycle and help developers stand out.”
— Anuj Goradia, Director, Dosti Realty
“Mid-tier developers, who used to rely on floor-rise premiums, have lost that advantage due to market saturation and buyer resistance.”
— Ritesh Mehta, Senior Director, JLL India
“Homebuyers will always pay for premium views, especially in high-value areas like Bandra.”
— Sharan Babani, Promoter, Satguru Builders
A Look at Flexible Payment Schemes
Beyond pricing simplifications, developers are also reviving flexible payment models like the ‘Buy Now, Pay Later’ scheme.
Key Features:
- Pay 10–20% upfront
- Move in with partial payment
- Balance payable over 12 months post-possession
Major players like Rustomjee, Hiranandani, Kalpataru, and Arkade have all explored or offered this model at various points.
FAQ Section
1. What is a floor-rise premium in real estate?
A floor-rise premium is an additional charge levied on apartments located on higher floors, often justified by better views, exclusivity, and higher construction costs.
2. Why are Mumbai developers waiving floor-rise premiums now?
Due to slowing sales, high inventory, and fierce market competition, developers are offering uniform pricing across floors to attract more buyers.
3. Is this trend visible in other cities like Delhi-NCR?
No. In Delhi-NCR, developers still charge Preferential Location Charges (PLC) for higher floors and units with scenic views.
4. Are such promotional offers permanent?
Most are time-bound marketing strategies to boost short-term sales, though some may influence long-term pricing behavior if widely adopted.
5. Do buyers still pay more for sea-facing or high-view apartments?
Yes. Premium views still command higher prices, especially in luxury localities like Bandra or Worli.