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Real Estate >> News
Price Correction for Homes in Mumbai: A Bonanza for End-Users
By
siliconindia
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Wednesday, September 4, 2013
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Mumbai, the Stocks and Financial capital of India has always been in highlight for its upmarket residential and commercial zones. Lately, the leading realtors have been noted to contribute in the residential re-developmental drive in the areas which have already occupied the vacant land. Moreover, in tandem to the rising demands, there has been a significant restructuring of rules and regulations by the housing and development department of the state of Maharashtra government.
Many administrative rulings in the two years have strived to expand the habitation zones in Mumbai, the most populous city of India. The decrees for number of floors and proximity of housing complexes to the fire-fighting stations have been reviewed in order to accommodate more number of residential units in the urban pockets of this city. However, the biggest respite to the ever increasing price tag for homes in Mumbai has come with the natural maturing of the price graph in the recent times. As noted by the First Post, there has been a considerable correction in values of immovable (residential) assets in Mumbai over the last few quarters.
The liquidity squeeze faced by the market and the subsequent increase in the number of unsold units has brought down the prices of apartments in the areas like Ulwe (outside Mumbai). Owing to the rising inventory, the speculative effect of escalated prices is being observed to be grounding yet again. This has brought a promising and lucrative stance for the primary demands and the end-users in the market. As opinioned by the realty experts, this is the most ideal time for the home aspirers to invest and own a property for a long term use in Mumbai.
The correction of the price levels in Mumbai residential properties does not just halt at the cost or basic price of a residential unit. The developers are being witnessed to offer giveaways to increase the sales figures and to expedite the generation of returns. This is the time when the home buyers with limited budget can avail facilities like free furniture and other perks like preferred location of an apartment within a particular residential tower. In pursuance to the chain of events discussed above, the Mumbai residential realty is supposed to witness financial transactions skewed in the favor of genuine buyers in the coming future.
As a conventional wisdom, the correction cycle is not momentary, rather carries on for a substantial period of time. Mumbai realty ecosystem is also expected to boil down to a flat pricing level which will enable the real/end users to benefit from the thriving realty sector. Unlike in the speculative market, this pricing correction will be based upon the actual demands and a healthy absorption rate. The future also looks positive for the realtors as once the inventory of built-up homes gets cleared, there will be enough funds to be redeployed in the other upcoming projects in Mumbai, one the most urban regions in the world.
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