Prices of property in Mumbai city is about to correct by up to 20 per cent

Demand for housing

While management of the inventory level and rising demand from home buyers may end with the decline in the rates of the property in Mumbai. In Mumbai Metropolitan Region (MMR) the property prices can fall by 20 per cent in next few months. According to recent study conducted by ASK, “The demand of housing in Mumbai Metropolitan Region is expected to increase by 1.20 to 130 lakh units per annum, while property demand in Mumbai is likely to correct by up-to 20 per cent in next few months and the main  reason behind this is large presence of inventory.

The demand for housing or apartments units has been driven by the sectors like; entertainment, media, telecom, finance, jewellery, IT/ITeS, gems and trading industry and it is expected that same will continue in future as well. Amit Bhagat, CEO and MD of ASK Property Investment Advisors stated that, “ Increasing sub- urbanization of the Mumbai region and demographic growth statics indicating that in next 2 to 3 three years there will be requirement of 1.20 lakh to 1.30 lakh housing units. The more he added that, “We are expecting that price will not go up because of balanced demand-supply ratio, while growth corridors are expected to witness rise in demand from end-user. It is expected that there will be 20 per cent correction in the price of real estate in next month.

“The expectations of low interest rates, standardization in approvals and different policy initiatives will provide boost to the real estate sector whereas; the imminent economic growth would result in higher addition of jobs, rising income levels and need for housing” ASK Group CEO and MD Sunil Rohokale said. At the same time, the housing units which meet the end-user budget can be the real challenge for real estate sector. The locations such as; Navi Mumbai, Ghatkopar, Andheri will be the future growth centers because of the infrastructure projects which are coming up in these markets. The availability of scarce land with limited FSI (floor space index) in the island city has compelled residential and commercial development to move north-wards. And various infrastructure projects are coming up in the suburban regions, which are attracting the developers to develop more projects in these markets.