Mumbai: Be “real”istic!

January 11, 2007	(2 votes, average: 4.5 out of 5)  Loading ...
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Realty basks in speculation, and Mumbai has always been a top story when it comes to matters of real estate. Enjoying the status of being the country’s financial and business capital, Mumbai’s property market has very naturally been influenced by the country’s economic health.

As prices of real estate in cities like New Delhi-NCR Chennai, Kolkata and Bangalore strode upwards, Mumbai quietly watched in the first half of 2006, but in recent months there has been a sharp increase, with several stories again doing the rounds.

Foreign funds, demand from the retail sector, speculation - none of these can explain the sudden rise. Mumbai suffers from a persistent shortage of homes, as more families go nuclear or upgrade to larger apartments. This appears to be the only reason for this rate hike. But to touch figures of Rs.60, 000 per sq. ft in premium localities, and Rs. 20,000 in the middle-rung category - well, that’s crossing all realistic limits!

Industry and the city’s residents can hardly afford a bubble - if that is what speculation is bringing about. The Government needs to move in, by exercising controls on banks, and curtailing their lending. Experts are hoping for some price correction in property prices in 2007.

Story Submitted by:
Nakul - Real Mumbaikar

News Published Under:   Real Estate India, Mumbai, Members Contribution |

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