Mumbai Developers Scrap Floor-Rise Premiums to Boost Sales

In a notable shift driven by market conditions, several real estate developers in Mumbai have reportedly begun waiving floor-rise premiums, a move aimed at reviving sales amid growing inventory and cautious buyer sentiment. This development could offer significant savings for prospective homeowners and spark a more transparent pricing model across the city.

What Is Floor-Rise Pricing and Why It Matters

Floor-rise pricing refers to the additional charge per square foot levied for apartments on higher floors. Traditionally, this premium ranged between ₹100 to ₹500 per sq. ft., with the justification being better views, improved ventilation, and reduced noise. For a typical 1,000 sq. ft. apartment, this could translate to an added cost of ₹5 lakh.

However, in recent months, some developers in Mumbai have introduced a “no floor-rise” pricing strategy, offering uniform rates across all levels of the building. This has opened up the possibility for homebuyers to opt for higher floors without the burden of extra charges.

Price Comparison Snapshot

Why Builders Are Waiving Premiums

Industry insiders indicated that a saturated housing market, especially in suburbs like Chembur, Borivali, and Thane, has pushed developers to drop floor-rise charges to boost buyer interest. Prominent names such as Dosti Realty and Paradigm Realty are among those now offering flat rates across all floors. The simplified pricing has reportedly led to a 20–25% uptick in monthly bookings in affected projects.

From Subvention Schemes to Transparent Pricing

Experts note that flexible pricing models are not new to Mumbai. Between 2015 and 2019, top developers including Hiranandani, Kalpataru, and Rustomjee had introduced schemes like "Buy Now, Pay Later" and subvention plans. These offered easier entry points for middle-income buyers. However, with post-COVID homebuyers seeking clearer financial commitments, simplified pricing such as "no floor-rise" is gaining favour over complex schemes.

Why Mumbai Leads This Trend

Unlike Delhi-NCR, where premium charges for park-facing units or penthouses remain common, Mumbai's ongoing supply glut is nudging developers toward competitive and transparent pricing strategies. According to recent data, while Mumbai’s home registrations dropped 4% in May 2025, stamp duty collections rose by 3%—signalling that only reasonably priced units are being sold.

Buyer and Broker Sentiment

According to brokers, homebuyers are responding positively to the removal of floor-rise charges. A real estate agent from Andheri mentioned that deals are closing faster, and buyers appear more decisive. Without variable pricing across floors, customers feel more empowered to choose based on preference rather than budget limitations.

How Buyers Can Benefit Now

• Get it in writing: Ensure that the agreement clearly mentions no floor-rise charges.
• Verify with RERA: Cross-check uniform pricing in the registered RERA documents.
• Compare offers: Not all developers have adopted this model—look around before finalizing.
• Watch for limited-period schemes: Flat pricing may be promotional and time-bound.

Will This Continue?

Analysts believe that this trend could persist in the near term as developers attempt to manage unsold inventory. However, projects in high-demand pockets like Bandra or sea-facing areas might continue charging a premium for better views or locations. Buyers are advised to act quickly before demand or developer strategies change again.

Conclusion

Mumbai’s shift towards eliminating floor-rise premiums could redefine apartment pricing norms in the city. For buyers, it presents a rare opportunity to secure higher-floor units without the extra financial burden. For developers, it offers a tactical way to reignite sales in a sluggish market. With some groundwork and smart comparisons, homebuyers in 2025 stand to save significantly while enjoying more options without compromise.

FAQs

1. What is floor-rise pricing in Mumbai real estate?

It refers to the extra charge per sq. ft. applied to higher floors, typically between ₹100 to ₹500.

2. Why are developers removing floor-rise charges?

Due to increased inventory and slower buyer activity, developers are adopting more transparent pricing models to attract demand.

3. Is this applicable across all projects?

No. It’s mostly seen in mid-segment projects in areas like Chembur, Borivali, and Thane.

4. Will this affect resale value?

Uniform pricing may improve the resale appeal of higher-floor apartments due to better value perception.

5. Can buyers negotiate for no floor-rise rates?

Yes. It’s advisable to ask directly and compare nearby projects to support your negotiation.

Disclaimer: This article is for informational purposes only. Real estate pricing and schemes are subject to change based on market dynamics and developer policies. Readers are advised to consult certified real estate professionals or legal advisors before making any investment decisions.