Skip to main content

Mumbai's Property Values - A Chance to Save Money

Harboring dreams of buying properties in Mumbai? Well, if you've been doing so, the financial capital of India has better news for you. Mumbai, like it's colonial cousins London and New York, has not fallen prey to corrections in real estate prices around the world. Despite the fact that there is now a massive stock of property, a slow-down in the overall demand in the market and a decline in the financial health of most property developers, prices for property in Mumbai have not fallen. However, recent reports by property experts such as Knight Frank have pointed towards a marginal softening of prices in the Mumbai real estate market.

Down Is Good

For the past four quarters, prices have been fluctuating across a narrow range but the fluctuation has been with predominantly negative shift. The real market is making space and adjusting for newer launches such as new residential properties in Borivali. According to the report by Knight Frank, 'As prices in premium micro-markets tend to be much more volatile compared to the peripheral suburban micro-markets, prices in some South and Central Mumbai locations like Parel, Lower Parel and Mahalaxmi, have declined close to 10% over the previous three quarters while prices in Navi Mumbai, Thane and the peripheral suburbs of Central & Western Mumbai have either been stable.'

Pujit Agarwal, Head of the Orbit Corp. agrees with the reports to an extent. He says that though there has been a correction in the market by almost 20 percent, especially around Central Mumbai, there are places in South Mumbai which have hardly seen a shift in property values. Granted, there has not been any rise either, the market remains 'sluggish' at best. Navi Mumbai is one of the few places which has seen a slight increase in property values. However, Mr. Agarwal also states that, 'as far as the MMR (Mumbai Metropolitan Region) region is concerned, far flung suburbs including Thane, Kalyan and Dombivili have seen an appreciation of 10-15% and that continues to grow.'

The country head of Jones Lang Lesalle India, Anuj Puri makes another interesting point, he states that completed properties or resale flats have also witnessed an increase although across the market, there has been a 10 to 15 percent decrease in the value of properties which are yet to be constructed. This is good news for those who are looking to invest in new residential properties coming up in Borivali and Navi Mumbai, as those properties will see an immediate increase post the completion of construction.

Of course, some may view such a decrease to barely effect the market or the buyer's outlook, given that rates in Mumbai are already very high. However, there are still plenty of discounts being provided in order to make the market a truly competitive place with developers offering discounts of almost 15 percent through free stamp duties and registration, waivers of floor charges and parking charges. For those in the market for luxury and premium housing units, there are discounts as high as 25 percent available.

Reasons For the Decline

The reason developers in the country's financial capital are giving such discounts is because out of the 3 lakh residential units being constructed in Mumbai, almost half of them remain unsold. Thus, the total percentage of unsold 'stock' of property in Mumbai has gone up to almost 45 percent. The NCR (New Delhi & its satellites) have an unsold stock of around 26 percent.

Demand has also been on the downturn in addition to the rising number of cancellations over the recent quarters.

Should Buyer's Invest?

Experts say waiting a little bit would not be wrong, especially for those looking to purchase properties in Central Mumbai. There may be a further or sharper decline over the coming months which may help a lot of mid range consumers to save money on property.

Builders have had to deal with their stock of property increasing while their demand has perceptibly decreased. As the builders face rising interests and reduced profits, experts such as Knight Frank believe that they will look to offload their stock, even if it means selling at a lower rate.

However, there are also a few observers such as Anuj Puri who state that the elections may result in property prices going up or down, depending upon public sentiment. In such cases, it would be best to avoid the volatility of a post election market and make decisions now.

Bio:

Neel Carvalho is a freelance writer who focuses on the trends in properties in the Sub-Continent. Neel has been a keen observer of the market for almost two decades and here, he writes about the profitability of purchasing new residential properties in Borivali and Parel along with the reasons for which Mumbai's property values have corrected themselves. Write to him for any further queries that you may have.

Comments

Popular posts from this blog

List Of Common Flowers in Kerala With Pictures

Kerala is one of the famous tourist spot situated on the south of India famous for its numerous wild life and thick vegetation. Like the Himalayan ranges on the north of India,

Smart Investors: Three Real Estate Scams You Should Never Fall For

“Honesty is a very expensive gift. Do not expect it to come from cheap people.” –Warren Buffet

 There has never been any doubt that succeeding in real estate takes hard work, determination and commitment.

 It is not some get rich quick scheme as some have been misled to believe. It takes laborious work to see any real results and unfortunately, not all individuals in the industry are prepared for that kind of dedication just to succeed. Resultantly, some would give up with the belief that they are not cut out for that kind of line of work while the rest would resort to sleazy machinations just to guarantee a sale.

 From there, all sorts of scams and fraudulent schemes are cooked up and it is unfortunate that there are investors (especially novices and first-timers) who would be none the wiser and would buy into the scam. No doubt, the real estate industry is a sector that can be extremely profitable. But as it was stressed above, it requires hard work and unfortunately, some people a…

5 Common Examples Of Website Design Mistakes by Business Owners

This is a guest post by Sachin about five Common Examples Of Website Design Mistakes by Business Owners . When most business owners think about website design, they think about a brochure online. Online shopping sites are making a lot of money with the use of web-based applications to sell products, collect payments an arrange delivery. The only work left to do is pack and send the boxes. Smart applications can even print out the labels, so the only thing left to do it stick them on the box. Unfortunately, in many cases, websites are replacing people. For those of us left with a job, we can be thankful that many business owners make the following mistakes when it comes to websites and web design.


Don’t have one. This is the first and biggest problem of most business owners when it comes to website design. They think they don’t need one. Who can ever really do with less business? The reason why they have not been getting business from online sources in the past is because they have not …

AMOLED display coming to Samsung Galaxy Tab range

This is a guest post by Erica about the arrival of AMOLED display to Samsung Galaxy Tab range.Samsung could be transplanting a seven inch AMOLED screen into an upcoming addition to its Galaxy Tab range of tablet computers.

You may have experienced an AMOLED display in a small portable device before as Samsung, Nokia and HTC have all used them in smartphones to date. However, the expense of producing AMOLED screens has prohibited them from appearing on larger devices like tablets, until now.


The seven inch Galaxy Tab was launched last year but an update with an AMOLED screen would be most welcome, cutting energy consumption and improving colours and contrast ratios across the board.


The rumours about this device state that it will run Android 3.0, feature a three megapixel camera on the rear, a two megapixel snapper on the front and have a display resolution of 1024x600 which is not bad for a device of this size.


The hardware powering the new Galaxy Tab will consist of a 1.2GHz processor w…

Building Blocks for Virtual Businesses : Key technological systems you must have to succeed in the remote business world

This is a guest post by Ripley Daniels about "Key technological systems you must have to succeed in the remote business world.

Whenever I tell friends I had a tough day at the office, they laugh at me. That's because they know I don't really have an office. I work very hard but I work for a company that is completely remote. Only a few of my co-workers ever go into an office at all and when they do, it's only for short periods of time. Our "office" is a virtual one. To us, the traditional office workplace is a thing of the past, alongside Tyrannosaurus Rex, the slide rule, and telephones where you stick your finger in a hole and turn a dial.
Unfortunately, none of this prevents me from having tough days. I still have them. But the reasons have nothing to do with the fact that my co-workers and I don't have a brick and mortar edifice that we can use to plan, strategize, hold our meetings, make presentations, discuss sensitive business topics, build relatio…

I’m 18 - Does my credit score affect my premiums?

At this point, what doesn’t?!

Okay, we’re off to a morbid start. But I’m just trying to keep it real. And in an effort to keep it real, I’m going to tell you a few things about your credit score so that you, yes you, at whatever age you are- wherever you are- know the whole deal about credit score and how it will affect you in more ways than one if you’re not being careful.

Archive

Show more