Properties in Mumbai: Will they see Price Fall, Will They Not?

Mumbai Property at Makaan.com

With the proposal of the eminent builder, Lodha Group to built an affordable residential property in the land across Navi Mumbai and Dombivalli, it seems that Mumbai real estate seems to have risen from its ashes like a Phoenix. But any conclusion cannot be drawn on the basis of a single example or so. The real scenario is far from being normal. New Year came like a jolt, when the government raise the rate of ready-reckoner in the city. With the increase in stamp and registration duties, the buyers are now under they extra-financial burden.

The number of unsold residential property in Mumbai, as of record, stands at a whopping 130,000. With such a phenomenal number of vacant inventories, developers are not too hopeful this year too. Though Indian Banks have played a major role in not letting the pricers go down, it has not helped much to Mumbai builders. With increase in interest rates, the affordability factor has remained a dream for so many buyers in the city. The loans given by them for commercial sector has grown at a much faster rate as compared to their lending rate. The property rates in Mumbai have been escalating from past few years, and since 2009, there has been a 12% raise in prices.

There has been a considerable drop in the interest from the investors to roll out their money over Mumbai properties. They see little probability that their investments shall reap any worthwhile returns in the near future. As the buyers are not willing to spend money over purchasing, investors are finding it very hard to expect good gains. There are some people and research firms that are positive that the trends shall discontinue in 2014. According to them, the rates are about to fall by 50%, and if that happens in reality, the entire Mumbai real estate shall see a sea change. People in favor of this agreement say that the property bubble in the city is about to burst anytime.