Real-estate prices in Mumbai are falling

Q: I am sure that people of Mumbai will love this fall. And it is happening. The average cost of a flat in Mumbai is getting down.

Shantanu Kumar, Mumbai

24th August 2015

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Replies (3)

I agree with the Ujwal's point of view.......to increase sales, developers have no choice than to cut property rates. We have seen that in most of the under construction projects, builders are keeping low prices.

Year-to-year, prices have come down almost by 0.95% and 3.23% in MMR region and Mumbai, respectively. The quarter-to-quarter fall is 0.99% in MMR and 1.51% in Mumbai.

Varun,

24th August 2015

Comment

Right Varun,
The average flat rate per sq-ft has also decreased. In 2014, it was Rs 13020/sq-ft in MMR. It is Rs 12896 in now. In Mumbai, it has dropped from 20125/sq-ft in 2014 to Rs 19681 in 2015.

Kishore Pathak, Mumbai

24th August 2015

According to me, over supply of housing units and high prices are drying out property sales. Even builders admit that they are feeling the pinch. They are facing the huge problems in clearing pile-up inventory.

Rajiv,

24th August 2015

Comment

Yes, builders are in huge debt due to decrease in sales. Now, they are asking that how long they have to wait and how much does affordable mean? If we take the advice of a property expert, it will remain slow for 2 more years.

ujwal nikam, Pune

24th August 2015

Affordability means, the total flat cost should be equivalent to the total 5 yrs. income of a husband and wife. If it is more than that, buyers will be opposed and will stay away from the market.

Varun,

24th August 2015

@Varun,
We can't blame the builders only, In Navi Mumbai, CIDCO and local land owners are selling the property at such a high rates that developers have to increase rates. I hope that the govt. will reduce taxes and banks will cut down interest rates. If that happens, customer will again start buying.

ujwal nikam, Pune

24th August 2015

It is happening because the property prices had shot up beyond the buying capacity of the customers. But there was no matching rise in salaries. There is a huge difference between affordability and realty. And a result, it has decreased the sales.

Rajiv,

24th August 2015

Comment

Right Rajiv,
It is seen that the average cost of a 2BHK apartment was Rs.3 crore in 2014 but in 2015, it is Rs. 2.90 crore. In the MMR, corresponding figures are Rs. 1.32 crore and Rs. 1.30 core respectively. There is no significant sales and most registrations are for leave and license and lease agreements.

Varun,

24th August 2015