The number of construction applications developers have made in Mumbai has increased

Q: Is this the end, or start, of Mumbai property price fall?

Govinda,

8th December 2015

Real estate News in Mumbai

mumbai properties

mumbai property prices

building proposal

construction applications

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Replies (3)

Reason was clear. Because Reason, fence-sitters having realized that a price correction of sorts has already happened and given that the capital values have not gone up in the last 2-3 yrs. in spite of annual inflation of 5-8%.

Saran,

8th December 2015

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I accept Saran.
The number of unsold units in the city stands at over 72000, something that will take 66 months to sell, compared to 8-12 months of inventory that builders keep in a normal market.

While data show that most of the city's housing stock is incomplete rather than in ready-for-sale condition. I am sure, the high number of inventory will hit the market at some point in future, putting downward pressure on prices.

Ankita, Ghaziabad

8th December 2015

Right Lokesh,
Current data are suggesting that the city's property prices may have bottomed out while others suggest they could fall from current levels, on top of the weakness seen over the past year or so.

Kaushik Bardia,

8th December 2015

Comment

As per Times of India data, between April and October this year, the Municipal Corporation of Greater Mumbai (MCGM) has received over 600 construction proposals. Compared to this, the civic body received all of 989 proposals in the last financial year.

Lokesh Patwa,

8th December 2015

@Lokesh,
But such high confidence can rise only if developers are confident that they will be able to sell the number of apartments they construct.

Kaushik Bardia,

8th December 2015

Right Kaushik,
Total residential unit sales in the city in the previous 4 qtrs jumped 28%, on the back of 26.5% fall in new launches. There must be something good happen that can help support prices..

Lokesh Patwa,

8th December 2015

It is true and i read yesterday in a article that the number of building proposals developers have made to the municipal body has risen, compared to last year.

On the other hand builders are confident of prices rising in the near future. But more construction will add to the already high inventory of housing stock in the city, putting downward pressure on prices.

Lokesh Patwa,

8th December 2015

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