Property prices in Mumbai soared by 66 percent in the last four years. Prices shot up mainly due to the limited supply and scarcity of land.
Mumbai has been one of the costliest property markets in India. Property prices in the city have always been in the sky and still they are moving upward, leaving the home buyers hopeless.
Due to the higher property prices, the buyers are not able to purchase any property now. This has adversely affected the home sales in the city and so the property experts were expecting a price correction soon in Mumbai.
Against the expectation of the experts, the situation is getting worse as the prices have again soared. There is no chance for a price correction in the near future.
The experts now say that the property rates are shooting up mainly because the city experiences scarcity of land for development. This has affected supply as well. In the city centers, there is no property available. This few or limited number of vacant properties or properties for sale, has boosted the prices.
Jones Lang LaSalle India reported that during the last four years, the prices in the city have gone up by 66 percent. This is against the expectations of the experts.
Recently the city witnessed weak home sales. Thus the experts thought that the property prices would be corrected to attract home buyers. In some of the areas, the developers had started offering their new projects at lower prices than the existing property rates.
JLL West India’s MD Ramesh Nair explained that the prices are always dependent on the number of unsold properties. These properties are pictured as precursor of corrections. If this is true, the residential market in Mumbai had to correct the prices at least three years back, said Mr. Nair.
Property rates in Thane and Navi Mumbai also rose. While the former saw a rise by 70 percent, the prices rose by 74 percent in the latter one.
