Property Prices Stabilize in Mumbai

August 21, 2007	(4 votes, average: 3 out of 5)  Loading ...
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Mumbai real estate has been showing the signs of sluggishness for the past couple of months. The property prices in the city are not coming down but the rate of increase is lower. It is as low as five per cent in Vashi, Goregaon, and Thane.

However, exceptions are always there. This time they include Worli, Parel in Central Mumbai which have emerged as retail hotspots. Here, increase in prices is believed to be going through the roof. No flat was available for less than Rs 14,000 per sq ft in 2006 and it is Rs 23,000 per sq ft. in 2007.

Changes in social and economic topography are bringing large benefits for the areas like Parel and Worli, says Ashish Raheja, Managing Director, K Raheja.

High interest rate on home loans is another factor discouraging home buyers in Mumbai. Then, there is the sharp increase in value of rupee. The rupee appreciation has hit bonuses in 2007 and those who are working in export oriented industries are not really buying, says Kastubh Kulkarni, Executive Director, Real Estate and Investment Banking.

With demand for properties dropping, the real estate in Mumbai is going at snail’s pace. However, the investors are keeping themselves at bay as their returns are shrinking.

News Published Under:   Mumbai |

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