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Mumbai’s property market may see price drop

If you’re looking for flats in Santacruz or other parts of Mumbai, chances are, you’re going to be disappointed with the high prices on offer! Indeed, Mumbai has witnessed a huge slump in its property market owing to the supremely high and exorbitant prices of property here. Property prices have gone out of reach for the average property buyer and only a few high net worth customers fuel the real estate market in most of Mumbai’s areas. This is a disappointing situation for realtors who are witnessing huge problems in selling off their apartments and other housing projects. This situation has contributed to the creation of huge pressure on developers and land rates alike! Some experts feel that a price correction or drop is waiting in the wings should this trend continue for some more time. Inventory has been rapidly piling up for most developers though there is no drop in demand from prospective and aspiring home buyers.

As a result of the situation, property prices of flats in Santacruz and several other localities in Mumbai may go down by an anticipated 20% or so. This trend should be applicable majorly for the Mumbai Metropolitan Region or MMR over the next few months according to property experts. Even potential customers are waiting for this drop in prices before making their purchase or investment decisions. Housing demand in the MMR will be going up to a whopping 1.20-1.25 lakh housing units as per approximate estimates by experts on an annual basis over the next two-three years. However, property prices should also be coming down by around 20% over the next few months owing to the rising volumes of unsold inventory being held onto by developers.

Housing demand is always generated by several businesses like finance, media, entertainment, telecom, IT/ITeS, trading and gems and jewelery and these sectors will continue to drive demand for housing in Mumbai’s realty market. Higher economic growth and affluence will certainly spark demand for flats in Santacruz and several other prime areas of the city. Interest rates on home loans are expected to be dropped a little while disposable incomes are slated to rise on the back of a healthier economy and higher volumes of job creation. Apart from prime areas like Santacruz, demand will be the highest in areas like Ghatkopar, Chembur and Andheri which are witnessing the creation of several infrastructural projects.

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