Oversupply of Indian real estate in 2012-13
Mumbai’s residential property market is predicted to witness a glut in 2012-13 owing to steady new launches at a time when sales are extremely slow, according to Indian real estate consultancy Jones Lang LaSalle India.
“The overall sentiments of the market and the consistent rate of new project launches in Mumbai give a clear indication of an impending oversupply by 2012. A lot of developers in the most severely affected locations are currently open to closing sales at lower rates,” said a note by Jones Lang LaSalle India.
Mumbai real estate prices have already dipped
According to JLL, Mumbai real estate prices have already dipped in Parel, Lower Parel, Mahalaxmi, Bandra east, Andheri east, Goregaon east, Kurla and Mulund. Jones Lang LaSalle points out that after surpassing the peak values of 2008 by 20 per cent by way of correction, the property rates have now slumped back to peak 2008 levels.