Mumbai Properties May See Price Correction

July 18, 2007	(2 votes, average: 3.5 out of 5)  Loading ...
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Around 82,000 new flats with an area of 1,000 sq ft. each will come up in Mumbai adjoining Navi Mumbai, Thane, and Kalyan in the next three years, says the report compiled by the real estate consultancy firm Knight Frank India.

Residential property market constitutes almost 80% of the real estate in India. In 2006, property prices in Mumbai have witnessed a 30-80% hike and were believed to be the major factor in bringing down the sales and pulling down the demand.

There has been little fresh construction in the posh colonies of South Mumbai.

No slash has yet been observed in Mumbai property prices, but a price correction of 15-20% is expected to take place for properties in Noida and Gurgaon, says Pranay Vakil, head of Knight Frank India.

An increase in home loan interest rate, excess supply and falling demand paved the way for price correction. However, prices may get stabilize in the next two months, he adds.

Taking a look at Bangalore real estate, it has marked a quantum jump of 50-60% in property prices. Unlike Mumbai, demand for residential property in Bangalore is on rise as being pushed by IT hub. Other complimentary factors include attractive salary packs, double income families, and the increasing trend of nuclear families.

According to the United Nations, The rate of urbanization in India has outwitted the global average.

The urban areas are to witness a huge demand for housing as 40.7 per cent of the country’s population will settle in suburban localities by 2030.

News Published Under:   Real Estate India |

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