Mumbai residential property set for fall of up to 35%
Slow sales and a glut of properties are set to hamper the residential property market in Mumbai, India, and prices could fall by a further 30% according to analysts.
The glut is likely to extend into 2012/13 as steady streams of new Mumbai developments are launched on the market, according to real estate consultants Jones Lang LaSalle. Developers who bought land at high prices are now having to bring prices down.
‘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 JLL.
Sanjay Dutt, Chief Executive Officer – Business at Jones Lang LaSalle India said that of the total recent residential sales about 65% of flats in Delhi and 35% in Mumbai have gone to speculators. These flats are also expected to roll back into the market.