Property prices may go down in south mumbai

The terrorist attacks on Mumbai are likely to further pull down the sagging property prices in the city, especially in South Mumbai. South Mumbai, the most expensive property market is expected to face a dip in value across all segments, including rentals, in the next half year.

“It’s is too early to say anything now. However, the attack would definitely be a dampener to the sentiment, at least in the initial few months. The attack may also create a ripple effect on the property prices in the suburban market,” Pranay Vakil, chairman of Knight Frank India said.

Many property consultants had already assumed that South Mumbai property prices would further appreciate, though marginally, in the second half of the year due to demand-supply mismatch. With the government taking measures to attract more foreign business in recent years, there has been consistent interest in establishing and expanding operations in India, thus leading to an obvious pressure on real estate, especially in South Mumbai.

Price is usually a function of demand and supply. The excess demand for properties had been pushing up the prices in this part of the city till recently. “The attacks would spread negative sentiments in the property market. New property deals will be very negligible in the next few months,” said a senior official with Birla SunLife’s real estate division.

4 Comments

  1. Indian Car Blog
    Posted November 29, 2008 at 4:21 am | Permalink

    Well its not surprising. Not only property deals but even people will think twice before visiting 5 stars.

  2. Deven Shah
    Posted March 20, 2009 at 4:59 am | Permalink

    yes. Mumbai realty prices yet to see a huge correction till the first quarter of 2010. The prices specifiacally in central and western suburbs will go down by at least 40%, to the level of year 2004 due to simple fact that supply is incresed by 75% but demand has lowered and investors don’t want to take a plunge as share market is bottomed out blocking funds and liquidity crunch.

    Anybody wants to buy or invest in Mumbai property, then year 2009 is not his year but first quarter of 2010 would be the right one as prices will start a slow climb up after bottoming out.

  3. Ravi Bhagwat
    Posted March 20, 2009 at 5:16 am | Permalink

    I was wondering since last couple of yeras that south mumbai flat prices would ever come down in coming years but to my pleasant surprise, last few months I witnessed slow down and prices have really came down by 25% from Culaba to Sion and Churchgate to Bandra.

  4. nirmal singh
    Posted March 31, 2009 at 9:32 am | Permalink

    i want 500 to 1000 sqft commercial show room in south mumbai gpo,vt,colaba,cufprare,tardev, hajiali padder road,worli, west andheri, juhu, babul nath,fort,metro, charni road,opera house, thank you

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