As Mumbai’s real estate market faces a surge in unsold inventory and a cooling of housing demand, developers are revamping their sales strategies to attract cautious homebuyers. From flexible payment plans to the latest pricing tactic—scrapping floor-rise premiums—developers are making bold moves to stay competitive. This article explores the evolving trend of “No Floor Rise,” its impact on sales, and what it means for buyers and developers alike.
Why Developers Are Waiving Floor-Rise Charges
A Shift in Pricing Strategy
Traditionally, Mumbai developers charged ₹100 to ₹500 per sq ft more for higher-floor units, citing better views and the higher costs of constructing tall buildings. However, this norm is now being challenged as:
- Inventory piles up due to increased supply in high-rise developments.
- Sales momentum slows, prompting developers to remove barriers like floor-rise premiums.
- Buyers become more discerning, preferring value-added deals over conventional pricing layers.
Even top-tier (Grade A) builders are now adopting this model to remain competitive, with Grade B developers quickly following suit.
The Impact of ‘No Floor Rise’ on Sales
Measurable Boost in Buyer Interest
Developers report that this strategy has yielded positive results:
“We experimented with the ‘No Floor Rise’ offer in two of our projects in Mumbai at Chembur and Borivali, and we saw a 25% boost in sales for the projects in a month,” said Parthh K Mehta, CMD of Paradigm Realty.
This pricing approach levels the playing field for mid-floor and higher-floor units, making them more accessible to cost-sensitive buyers who previously avoided paying premiums.
How Does This Compare to Delhi-NCR?
While Mumbai is seeing this reversal in pricing strategies, Delhi-NCR developers continue to charge Preferential Location Charges (PLC) for units on higher floors—especially those with desirable views. This regional contrast underscores how market dynamics and buyer psychology differ across India.
Are These Just Marketing Gimmicks?
Not entirely. According to industry experts, this is a necessary adaptation to current market conditions:
“Due to high inventory levels and intense competition, many developers struggle to maintain these premiums,” said Ritesh Mehta, Senior Director at JLL India.
Grade B developers, in particular, who once relied heavily on floor-rise charges as a revenue stream, now find themselves having to eliminate such add-ons to stay in the race.
Premium Views Still Command a Premium
Despite the broader trend, one element remains constant: exceptional views still attract higher prices.
“In premium markets like Bandra, sea-facing or panoramic view apartments continue to command significant premiums,” shared Sharan Babani, promoter of Satguru Builders.
This suggests that floor-rise premiums may not vanish entirely but will be selectively applied based on location and view quality.
Quick Summary Table
| Key Indicator | Details |
|---|---|
| Trend | No Floor Rise pricing strategy |
| Target Areas | High-rise projects in Mumbai MMR |
| Developer Impact | Grade A and B developers removing floor-rise charges |
| Sales Impact | 25% boost in select projects (Chembur, Borivali) |
| Regional Comparison | PLC still applicable in Delhi-NCR |
| Views-Based Premium | Still prevalent for sea-facing/high-demand units |
| Market Registration (May 2025) | 11,565 properties (↓ 4% YoY) |
| Stamp Duty Collection (May 2025) | ₹1,062 crore (↑ 3% YoY) |
Frequently Asked Questions (FAQs)
1. What is a floor-rise premium?
A floor-rise premium is an extra charge per square foot (typically ₹100–₹500) levied on apartments located on higher floors due to better views and higher construction costs.
2. Why are Mumbai developers scrapping floor-rise premiums?
To counter rising unsold inventory and revive sluggish sales, especially in high-rise buildings where competition is intense.
3. Is this trend prevalent across India?
No. While Mumbai is seeing widespread adoption of this strategy, regions like Delhi-NCR still charge Preferential Location Charges (PLC) for upper-floor units.
4. Do higher floors still offer investment value?
Yes. Apartments with exclusive views—like sea-facing or panoramic skyline vistas—continue to command premiums and see better appreciation.
5. Are sales really impacted by these pricing changes?
Yes. Developers like Paradigm Realty and Dosti Realty have reported noticeable spikes (up to 25%) in sales after removing floor-rise charges.