Reason for slump in real estate in mumbai?

Question

Reason for slump in real estate in mumbai?

Answer 1

I know a lot about real estate in the USA.  I know nothing about Mumbai. If you click on the flag at the bottom of the page, you will get great answers. /

Answer 2

Slump is in the Middle Income Groups (middle bracket) of flats. (Rs. 30 lakhs  - Rs. 1 crore).

Due to great appreciation in prices in past 2 years.

Although bigger builders are still not reducing prices and are flooded with money.

Smaller builders are giving discounts and a good time to buy.

There is no slump in Higher Income Groups and Lower Income Group flats.

Answer 3

Much of the slowdown has to do with basic economic factors of supply/demand and a downturn in the Indian economy, and a slump in the global markets. All of the these factors affect real estate around the world. Prices were pretty inflated not long ago, so they are undergoing a "correction" right now.

Also, prospective home buyers are not buying as they are waiting for interest rates to drop and property prices to correct. The costs of higher labor, steel cement, etc are also causing an effect in the markets.

It looks like property rates are about to go down another 10-15 percent, especially in the suburbs. Here is what analysts are saying:

"Mumbai property price are seeing a price correction in the recent months. Both, the residential rental and capital market in Mumbai have witnessed a price amendment. There has been a 70 per cent dip in Greater Mumbai, whereas South Mumbai and suburbs are reported to have seen a 10-15 per cent correction.

The main reason cited by the industry experts for the slowdown in Mumbai property market is that, a number of local factors and main features are common in the city’s distant suburbs. According to Mumbai real estate agents, developers are wary of being lost in the muddle of look-alike offerings in the real-estate market, so they are coming up with innovative ideas to sustain."

It seems that some are saying that in the near future is a good time to invest as prices have been coming down. Bad for homeowners. Bad for the industry. Good for investors.

I hope this gives you a start to what is going on in Mumbai (Bombay).