Skyrocketing Property Prices In The City Of Dreams

Mumbai is a city of dreams that brings many people to its shores. But over the years due to rise in demand of real estate in Mumbai the prices of property in Mumbai have reached a new high. Buying flats in Mumbai, these days, has remained the sole privilege for the very affluent class, especially in the Western Sururb of the dream city. In areas like Powai, Andheri, Jogeshwari and Goregaon an unfurnished, 650 ft., 1 BHK flat can cost you anywhere between 60 lacs and 1 crore!! The prices in real estate in Mumbai has swelled too much that it can burst any time now. Areas such as Thane and Navi Mumbai that were supposed to offer the affordable housing to middle and lower-middle segments, who could afford to buy property in Mumbai, 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 real estate and 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.