For all of you keen on buying a flat, despair not. Real estate prices are already falling and this trend will continue in the coming months.
Western and central suburbs see fall of 15-20%
MUMBAI: For all of you keen on buying a flat, despair not. Real estate prices are already falling and this trend will continue in the coming months.
Chairman of Orbit Corp, Pujit Aggarwal said, “I can state quite firmly that not only are we seeing a slowdown in sales but also a reduction in flat prices. Right from Lower Parel belt to Santacruz, rates are down by 15-20%.”
In the western suburbs, the fall is 20% in the case of Jogeshwari, Kandivli and Borivli and 30% in areas which are far-flung.
Brokers at Andheri and Goregaon said prices of Oberoi properties and Nitesh Estates had fallen. “Oberoi has lowered its price by Rs750sq ft to Rs8,200 while Nitesh Estates has slashed rates by Rs1,500sq ft in Andheri where prices are going at Rs8,500-9,500sq ft.”
Property developer, Niranjan Hiranandani, who has commissioned residential complexes at Powai and Thane, told DNA that prices had indeed fallen by 15-20% in spots beyond Ghatkopar on the central route. “Prices in the city have also fallen by 10 % and the time has come when developers are going to part way with properties they were holding on to,” he added.
Chairman and country head, Jones Lang La Salle Meghraj, Anuj Puri said, “Developers were holding on to properties for a long while but have now begun to release them as the market is not as buoyant any longer. Smaller developers are going at it faster ans and prices have fallen by 25% in some areas.”
His research head counterpart, Abhishek Kiran Gupta said a market correction was obvious. “Today, developers are giving sops and ready to negotiate with you when earlier they were not even thinking of lowering rates,” he added.
Chairman and managing director South Asia, CB Richard Ellis, Anshuman Magazine said prices would begin to fall in the next four months.
The extent of price cuts will, by the end of the day, vary from builder to builder. The reputed ones with deep pockets are not going to let go so easily and would rather hold on to their positions even for the 7-8 months. The mid-size and small property developers would have to cede ground if they have borrowed for their projects and need to recover money.
The truth also lies in the fact that in a city like Mumbai, where supply of apartments is limited, prices are never really going to crash. In fact, suburbs like Bandra are still prohibitively expensive and one can only look for some hope in emerging residential zones in Navi Mumbai, Thane and beyond.
In some of these areas, brokers would be open to negotiating sales of brand new apartments at even Rs 700-1,000sq ft less than the builder rate. It finally boils down to the supply-demand mismatch.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}