Falling demand for Mid-priced flats in Mumbai

February 6, 2007	(3 votes, average: 2.33 out of 5)  Loading ...
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Mumbai’s market for medium price segment flats seems to have started slipping. The prices of flat in the price band of Rs 40 lakh to Rs 90 lakh, is tapering off in the major suburbs and a decline of around 25-30 % has been noticed in the last two to three months.

Increasing prices in some locations, investors’ growing appetite to buy properties in fast flourishing cities like Pune, Nasik, Thane, and release of stringent credit norms by banks are some of the major reasons responsible for sinking demand for mid segment flats, says real estate connoisseurs.

However, a sudden decline in the primary segment to the medium segment has created a strange atmosphere. This has affected Mumbai real estate a lot and affordability of potential buyers is coming down; whereas, most people are waiting for the prices to back off a bit before buying, says Sanjay Chaturvedi, executive editor, Accommodation Times, an industry magazine.

Places like Mulund, Borilvali and Miraroad are experiencing a fall in prices too. As per the industry watchers, the demand for medium price segment flats has slowed down in the third quarter of 2006-07 but is likely to look up soon.

Furthermore, NRIs are finding properties in Pune, Nagpur, and Nasik excellent from the investment perspective. Mumbai property market is saturated as prospective investors are taking the way to vibrant places in B and C cities. Also, a hike in interest rates and tightening of bank credit to commercial real estate, by RBI, is also believed to be responsible for the falling demand of property in Mumbai.

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News Published Under:   Mumbai, Pune |

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