Flats in Mumbai: Skyrocketing Prices and Dearth in Demand

Buying flats in Mumbai, these days, has remained the sole privilege for the very affluent class, especially in the areas like Andheri and Goregaon. Even an unfurnished, 650 ft., 1 BHK flat in these areas and the like ones, can cost you anywhere between 60 lacs and 1 crore!! So, even after spending this stupendous sum on a 1 BHK, and that too unfurnished, what are you getting? The property bubble in Mumbai has swelled too much that it can burst any time now. Even in areas alike Thane and Navi Mumbai that were supposed to offer the affordable housing to middle and lower-middle segments, are ranking high in terms of price rates. What could be the reason behind such a catastrophic rise in rates?

The inflation that hit the Indian market recently resulted in an appreciable increase in the cost of construction materials like sand, cement, steel etc. To compensate for their invested money on these, developers started raising the rates. But they were not fair in doing so: they let the prices get appreciated too much, so much so, that the Mumbai flats gained a considerable raise in terms of prices. The greed of developers and builders, along with their nexus with political authority gave them ample freedom to appreciate the prices too much.

Seeing the hefty rates, the demand for flats in Mumbai came to an all-time low. Even the middle and upper-middle income groups started wavering from their decision to buy. In spite of the fact that the demand dwindled, the developers did not lessened the rates. Instead, to bring back the customers, they came up with offers like freebies and small discounts. But this strategy of theirs has not brought any fruitful result. As long as the prices do not get corrected, it would be difficult to see the demand get any increase.

Makaan.com is a property portal that lets you buy, sell, or rent flats in Mumbai and other major cities of India. Search from a plethora of properties as listed by developers, builders and property owners.