Few takers for premium apartments in South Mumbai

Q: What is the reason for few takers for premium apartments in South Mumbai?

Sandeep Mhatre, Mumbai

16th September 2013

Real estate News in Mumbai

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premium apartments in south mumbai

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Replies (4)

The fact is that the areas are too costly for a 1 rk flat you have to pay around 30- 40 lacs .

Maya Roa, Apartment Resident, Chandigarh

17th September 2013

Comment

The Napean Sea Road which has some of the most expensive apartments in the country by developers such as Lodha Group, Rohan Lifescapes and Orbit Developers. About 25% of the properties in this locality remain unsold. Investors who bought the properties at a lower price during the pre-launch are unable to sell their properties even after completion. According to real estate brokers, most of the investors in South Mumbai are looking at investing in the western and eastern suburbs with hopes of better returns.

Abhishke Karule, Mumbai

16th September 2013

Comment

There are very few areas in South Mumbai such as Prabhadevi and Lower Parel may be able to offer premium homes at reasonable prices.

Kishore Pathak, Mumbai

16th September 2013

There is also another problem which has deterred many people who want to buy properties from the point of investment. In the Mumbai market, buyers cannot sell their property without having complete possession. Newer projects either have longer exit-duration clauses or have stagnated due to delays. Neither are investor friendly. People who have already invested in properties are unable to sell till the project is completed.

Vinay Dixit, Mumbai

16th September 2013

Comment

The price appreciation in South Mumbai has gone down in the previous year to 10% compared to the 30% appreciation two years ago. Rental yields are doing worse as they have fallen more than half. According to the current trends in Mumbai, most of the supply in South Mumbai is in the high end ultra-luxury segment and it is difficult to get buyers for these properties

Kishore Pathak, Mumbai

16th September 2013

Comment

According to property consultants, sales of new properties in South Mumbai have gone down by about 30% in the last 8-12 months, with fewer users and investors willing to buy properties. Out of every 100 homes, only six are getting sold in a financial quarter. According to Knight Frank India, the South Mumbai market has seen a drastic change in three years. The once predominantly resale property market now has a lot of supply coming in which has led to inventory piling.

Abhishke Karule, Mumbai

16th September 2013