Mumbai’s property market witness inflation and over stretching

Aug 27, 2015 by

Mumbai’s property market witness inflation and over stretching

Checking out flats for sale in Santacruz West may seem like a good proposition to you but you should also check out the market conditions before going ahead. If you’re in a position to purchase property in decent Mumbai markets, you should consider yourself lucky as the market is in the throes of inflation and over stretching at present and this has led to dwindling buyer interest in some areas. However, Mumbai is not alone; property sales have dropped largely in several tier I cities across the length and breadth of the country including in Delhi and its surrounding areas where sales of properties have gone down by 20% while Mumbai has seen a 2% drop and this figure is set to go up in the near future even though Delhi, Hyderabad and Chennai are bearing the major brunt of inflation.

At present, flats for sale in Santacruz West or other important areas in Mumbai are priced exorbitantly and investors and end users are unwilling to pump in money owing to future possibilities of price corrections. Many investors and end users are still awaiting a correction in prices according to experts. This has led to the marginal drop in sales of properties. The current rates are not justifiable in several areas as per the expectations and desires of prospective buyers. This is the major reason behind such stagnation in sales of properties. The change of government at the Centre has not led to an overnight change. Disposable income will take time to go up on the back of policy measures and the property markets are beyond reach of the average buyer and this trend is set to continue for some time. Developers are also not bringing down their property prices in spite of lower sales volumes. However, they are attracting buyers with freebies like waivers on stamp duty and charges of registration.

However, there are several flats in Santacruz West and other prime destinations in Mumbai that are still finding buyers in specific segments. The ultra luxury segment is witnessing good growth in Mumbai and apartments under this category are being sold for substantially higher prices. Additionally, the entry level and affordable property markets are also witnessing significantly higher demand. It is the mid range property segment that is witnessing a little slump in transactions and activity. Market experts feel that the mid range segment will pick up with long overdue price corrections.

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