Mumbai for the First Time Witnesses Property Price Correction
Bangalore: Home buyers can now rejoice a little as the property prices in Mumbai have come down by 1 percent, said real estate experts.
For the first time in the past few years, the Mumbai Metropolitan Region (MMR) has witnessed price correction. It means within MMR, locations like Mumbai, its far-flung areas and 22 civic bodies in and around MMR, property prices have gone down by flat 1 percent in the last quarter, according to the latest survey done by Liases Foras, a real estate research firm, reports Sudhir Suryawanshi of DNA.
Whereas, other cities like Delhi, Pune, Chennai, Bangalore and Hyderabad have observed a reverse trend where the weighted average prices are going high for the same period.
Pankaj Kapoor, Managing director of Liases Foras said that this marginal 1 percent price correction is a good sign for potential home buyers. “Besides, 11,000 new residential projects were launched this year. The piling up of housing stock has only led to a decline in skyrocketing prices. Also, developers are already facing a liquidity crunch," said Kapoor. “The marginal fall will be welcomed by buyers looking for affordable houses,” added Kapoor, reports DNA.
Now in the metro region, the rate of an average per square foot costs 11,295, after the marginal drop in property prices. And, for an apartment, the average price has reduced to 1.17 crore. However, around 1.29 lakh units are lying unsold in the metro region compared to 1.17 lakh units last year. In Mumbai, around 39,295 units are lying unsold compared to 34,000 last year.
According to developers, this marginal correction took place in places where property prices were extremely high. Paras Gundecha, President of Maharashtra Chamber of Housing Industry stated that “Actually, this is the right time to buy property. There's no chance for rates to fall in future what with cost of land and construction material rising and procuring government approvals getting more time-consuming,” reports DNA.
Alternatively, the price correction might take place in localities like South Mumbai and Navi Mumbai’s Palm Beach Road as price in these prime localities have hardly seen any changes, said Manohar Shroff, Managing director of Shivam Developer. The correction will not happen in the emerging market where prices are low,” added Shroff.