Investing in property in South Mumbai has never been easier than ever before. There is steep price decline in recent times. At the same time developers in the suburbs, central and north west Mumbai are also offering seductive discouts that are simply hard to ignore.
But as counter argument, recent inflation and escalation commodity prices have taken toll on india’s biggest real estate market. Mumbai definitely is the biggest real estate market in india, has recently witnessed decline sucessivily for last 12 months, down to about 25 percent.
Even after the slump real estate prices hasn’t been revised, cause know best to the authorities. Possibily real estate market will react to the volatity in the stock market in upcoming months.
The once-sky-rocketing prices are now starting to settle down, if only just. Danish Siddiqui/Reuters
However, the upcoming metro and monorail projects which will connect high-density corridors to distant parts of the city, have already triggered an increase in real estate prices in corridors through which the Metro will run. As a direct consequence, areas such as Versova, Andheri, Ghatkopar, Chembur and Mankhurd have started seeing a rapid increase in real estate prices.
The undervalued are now getting their due
Recently the prices in wadala east have gone up from 3000 to 4000 a square feet that reaches to around 15 thousand in past three years and to it speculation contributes it more than the demand.
“If you look at the price movement in eastern parts of Chembur, Vadala and Ghatkopar there is an inbuilt escalation of prices. Lodha’s aggressive bid for the Wadala Truck Terminus included a contained cost of Rs 12,500 per sq feet, which means the launch price will easily be Rs 15,000 sq feet, says Dipesh Sohani, an analyst at MF Global.
Central and South Mumbai tell a different story
However, areas in Central Mumbai and the western suburbs have already started witnessing a price correction due to a demand-supply mismatch. Says Pittawala: “Deals in Lower Parel are being done at negotiated rates because the market is overpriced, money supply is less and people want to hold on to cash.”
According to Pittawala, for an investment, buyers should look at Bandra East, Andheri and beyond for affordable homes. For those willing to pay between Rs 3 to Rs 4 crore for a 2bhk, Bandra East is the ideal investment destination as it is not too cramped and is easily accessible due to the Bandra-Worli sea link.
Another real estate agent, Rahul Shah, said in Eastern and Central Mumbai, for homes that are less than two km from the station have experienced an average capital appreciation of 15 percent, where as those that are five to six km away have increased just five percent on an average.
So where should home-buyers and investors put their money? There are essentially two themes playing out in the Indian real estate sector. One is the re-development of old properties and the other being development of new infrastructure like Metro rail and airports across the country. “Marquee properties are the ones that set new record for prices. It will be a good idea to buy premium properties by reputed builders.
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