Prices of Mumbai Property are Expected to Correct in the Months to Come

Real Estate India

Whenever we talk of Mumbai property, the first thing that comes to our minds is the monstrous price. I had gone to Mumbai some 3 years back, and the first thing my landlord asked me was: Do you have a great salary? I was a little annoyed and thought how is this concern of his, as long as I am paying him his monthly rent. As I stayed there for about 2 years, I got to know why was he asking such a question. To thrive in a city like Mumbai, you really have to have a big pocket. And as far as property rates are concerned, they are immensely high. Before I landed this rental house, I had made an extensive search of the budget properties. What I got to know from all this was that even an unfurnished 2 BHK house (which they call 'bungalow'), you need to pay a pretty high rental. And if you don't have a good salary to back you, you shall end up living in shanties.

That was about my experience of real estate in the city. As per current scenario, the prices of inventories has reached such a skyrocketing level that the demand has dwindled over time. This year saw a 12% decline in the demand for Mumbai property. The result is all there to see: inventories, as old as 30 months are lying unsold, Despite all the alluring mechanisms adopted by the developers to call back their customers, the demand has failed to see any rise. The property bubble, just like in Delhi and Gurgaon, has swelled so much that it can burst anytime. But with this comes a positive streak of hope, the hope that the real estate prices shall get back to their correction.

If the correction happens, the demand would definitely scale up and the number of vacant inventories shall drop. We are about to see the same thing in other cities also, where the rates are extremely high.

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