Real estate in Mumbai to go through a price correction!

Talk of a correction in pricing of property in Mumbai has been doing the rounds constantly nowadays. Given the fact that the supply-demand gap has increased and there are more homes than the people of Mumbai require, several properties around the cities are lying empty and unoccupied. Developers have realized the need to pull down the prices to have these homes sold as soon as possible.

Today, some of the least expensive homes are priced at nearly Rs. 10,000 per sq ft, in the heart of the city. Prices drop as one moves towards the outskirts and further north of Mumbai. A 2BHK home in Mumbai costs approximately Rs. 1.5 crore, making such property accessible only to people earning more than Rs. 35 lakh a year! Abhishek Kiran Gupta, Real Estate Analyst at Bank of America Merrill Lynch, says, “This trend is unsustainable and prices in Mumbai will have to correct and remain subdued over the next 2-3 years. This will allow improvement in affordability as income levels catch up with residential prices. Most of the new launches during Jan-Mar 2013 have been at a discount to average market prices.”

Also, developers have come up with better ways to attract new customers and are constantly offering discounts on property prices in Mumbai. Builders have begun offering discounts through 20:80 schemes, stamp duty waivers, floor rise waivers and other such crowd-pullers. Pankaj Kapoor, MD at real estate firm Liases Foras adds, “Prices and land values have to go through a correction in Mumbai. Ready-to-move-in property is cheaper than those under construction. If you look at the secondary market, price correction has already taken place as resale apartments are being offered at least 15-20 per cent below the market price.”
This news is bound to work as good tidings for those looking to move into the city or invest in real estate in Mumbai. To know more about the best real estate deals in Mumbai, visit  www.snapghar.com  today!