Realty Prices In Mumbai Suburbs Intends To Fall

Property prices in mumbai suburbs have started cooling down and by March 2009 the fall would be anything between 10% to 20% from now, real estate consultancy firm Jones Lang LaSalle Meghraj said.

“There is no sign of propoerty prices coming down in the heart of Mumbai because of almost zero supply. But, beyond Borivali (a suburb) and in the neighbouring Thane district and Navi Mumbai, supply is well in excess of demand. Hence, prices in those areas is likely to come down by 10% to 20%”, said Anuj Puri, Chairman and Country Head, Jones Lang LaSalle Meghraj.

While in Borivali, prices are likely to come down by 10%, the drop would be in the range of 15% to 20% in Thane and Navi Mumbai by March.

There might be price correction beyond Thane as well, he said, adding it would take a long time for the real estate industry to recover from the current slump.

Puri said Punjab has been the worst hit due to the current macro economic environment of the country where property prices have already decreased by 15%.

“Tier-II cities like Indore, Nagpur and Raipur have also seen sales come down by 10% to 15%. If sales did not pick up during Diwali, there could be an additional 5% to 10% correction,” Puri said.

4 Comments

  1. Posted August 11, 2008 at 5:50 am | Permalink

    The Indian real estate sector might be going through a major downturn but to some extent it is also making things attractive for foreign investors. The slowdown, in fact, has set in more realistic valuations and growth-oriented investment opportunities for biggies to close in profitable deals. The recession in the US and the fact that China is tightening its FDI policy has aided a remarkable shift in investment. Experts feel that cities like Mumbai, Bangalore and the NCR region are hot investment destinations because of their strategic importance. Considering this, Mr. Donald Trump Junior is all set to launch a $1bn fund to buy property in India and Lehman Brothers Real Estate Partners has recently acquired a 50% stake in Unitech’s Mumbai project. Also, TAIB Bank, a leading private bank based in Bahrain has recently picked up a 26% stake into a project of Anant Raj Industries.For more view- realtydigest.blogspot.com

  2. Shrikant Dixit
    Posted May 5, 2009 at 6:48 am | Permalink

    In my view the actually recessional impact in terms of property will heat after may last week.Because the buffering capacity of the IT and vehicle etc. industries will come to an end who lose the jobs. Basically if we will glance on the senairo of whole realestate industry, specifically from last 3 years the rates were increased due to affordable class of above industries employes. Hence no one can say that, the decreased rates by 30 to 40% are the rates of correction. on the contrary builder/developers lobby is making fool to the actual shelter needed peoples. in my opinion may 2009 is the last month to make a fool to the peoples. hence after the complition of this migration period. This realestate industry will not only crashed but breaked their existance. Therefore comming next 2/3 years will be the buyers market for this industry. No one should be fear in context with rate increment in the sector.

  3. Shrikant Dixit
    Posted May 11, 2009 at 7:10 am | Permalink

    same as previously send on 5th may.

  4. GUl TULSIYANI
    Posted May 20, 2009 at 10:42 am | Permalink

    ARTICLE ON ACTUAL TREND OF REALESTATE AND IT’S FUTURE 20/5/2009.
    Rates of Real Estate market in Mumbai are yet to hit more. Because even after 30% current discounted rates, none of the affording customer’s class is available. Over all only 6% customers were registered their transactions/sale deeds in the regional office of the sub-registrar and in detailed survey this sale of flats is classified in two categories Viz.:-1)4% customers are transacted; due to not have any option, other than to purchase the accommodations at the available discounted rates in the market. 2) 2% customers are always remains in the market to deviate their jack pot income. After up to date detailed survey from Mumbai stamp duty and registration Authority, they confirmed real estate sales transactions and in the opinion that, from overall customers only 6% transactions were took place in the last 6 months from above pattern customers and may continue up to May 2009.. If you will glance on the list for sale of flats available with real estate websites and agents/brokers, you will come to know that, not only newly constructed flats but reseller’s flats are still remain unsold from last 6 months, Customers are wondering but keeping mum while transacting the accommodations due to rates are still unaffordable. The basic thing behind non-transaction is loss of the job’s or major cut in the salaries of IT oriented and automobile industry employees. Hence the class of higher income group is absent in the market for whom the builders/developer were boosted the rates and also overtraded the land. On the contrary this previous higher income class is now not even in a position to pay there prescribed EMI. Accordingly their flats are in the door step of loan issued banks for auction sale. Therefore another 30 to 40% fall in the real estate market will only brings the real cash flow in the concern market. Otherwise none of the attractive polices of the builders/brokers will work. In this connection, we may ask one question and that is, which income class has boomed this industry? The simple answer is IT/NRI/Automobile/ construction and ancillary industries. Major employees of this industries s are either loss their jobs or major salaries are cut down. Hence in shorter sense we can say that, none of the persons can make drama of the money. It means real-estate industry has to face the real crises and overcome themselves with the real correction in the property rates and not with the strategies applied up to date. In all the property exhibitions, attractive schemes from the builders were launched such as “ stamp duty and registration free from builders”, “No floor Rise”, “discount scheme on sq. feet rates is available for next 2 days”, “flats are in beautiful in natural surrounded area, visit with free bus facility”etc. etc. are proved fail. On the other part Share market index is also start booming after election result, this is all totally adverse atmosphere for real estate Industry. Because share market Index is always hedging type index, works with political activities. Share market investor class is always addictive with hedging type of transactions. Therefore Now and onwards specifically brokers remain alert and not to give any fake information of the rates to the buyers which they did in past few years consistently. Otherwise this market is already crashed and if overdose of the property rates will be given to ultimate customers, this market will collapse with it’s existence as it was happen in the recession of 1991 and 1996. Even new Congress govt. does not have any remedy to boom this industry. Discounted bank interest rates will be treated as placebo that would never be a real remedy; Govt. will construct new homes through MHADA, CIDCO, DDA authorities @ half of the rates than prevailing. Yesterday’s MHADA housing allotment lottery is the best example for it. Even TATA NANO HOUSING Project is also launched for budgeted 1RK and 1 BHK flats and others like Hawre construction co. are in a row to construct only budget oriented flats. This is nothing but danger warning bell for those, whose flats of 2/3 BHK are still remain unsold. Anyhow builders and developers have to cut down the prices though they have over traded. Thanks and Regards,
    Gultulsiyani.

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