Property prices are not tumbling now but could fall later. The world growth may slow down and property prices may sag in many markets. Indian property prices continue to remain resilient.

Prices increased by 10-15%
Real estate and property developers have increased prices by 10-15 per cent across various projects since April 2011, says a note by MF Global, a securities firm. ‘Ready to move in’ projects are commanding a higher premium of 15 per cent.

Affordable housing remains a “gimmick”
Another securities firm IFCI Financial Services said that affordable housing remains a “gimmick”. To overcome sluggish demand and maintain current property rates, developers deferred launch plans for new properties. Property prices in far eastern suburbs (Kalyan and beyond) and western suburbs (Boisar and Virar) are unaffordable for the common man.

Projects are no longer affordable
The ticket value of each 2 BHK is at least Rs. 70 lakh in Mumbai for projects located within octroi limits (up to Dahisar and Thane). With the recent price hike of 15% each in Virar (western suburbs) and Kalyan (central suburbs), projects are no longer affordable by the common man.

Property prices to decline mostly in Central Mumbai
IFCI expects property prices to decline mostly in Central Mumbai by 15–20 per cent due to high inventory and bulk supply. “Owing to the trickle-down effect and strong demand, prices would correct marginally by 5–10 per cent, respectively in the western and eastern suburbs,” the brokerage said.

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Tags: Boisar, Central Mumbai, Indian property buyers, Kalyan property, Mumbai real estate, property prices Mumbai, Thane, Virar

This entry was posted on Wednesday, October 19th, 2011 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.