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.
One Comment
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