The Beating Down Factors For Mumbai Property?
Mumbai property has been facing several crunches: the slowdown of the real estate market in the city has been seeing from quiet sometime now. In spite of all the speculations regarding it getting bolstered up, it has not been able to hold itself high. The ever-staggering prices always dampen the spirit of a common buyer and the never-ending wait for price-correction hinders any “resurrection” of his faith in the realty market. There are several adversities that the real estate is facing right now. The slump in Indian economy has directly effected property in Mumbai. This has resulted in increase in construction costs. With the hike in prices of inputs used for the developmental projects, the overall price of both residential as well as commercial markets are now sky-rocketing. The builders are not willing to pare down the costs and the much anticipated price correction never finds its way into the realty market. These astronomical costs have lessened the interests of a buyer into making purchases. Though data indicate that the demand for properties has raised by 16% in the first half of 2013, yet people are settling for budget projects only. With the lack of interest in the new and luxury projects, a big chunk of Mumbai property is lying vacant at present. As there are no takers, the developers are incurring losses and to recover these, they are hiking the property prices in affordable areas too. What’s the result? The houses in localities known for offering budget prices are getting sold at higher rates. The builders have resorted to create artificial demand in such areas to fool the customers. Then there are new FSI regulations: these shall be able to bring back the much-needed transparency, but it is very problematic to apply them to the under-construction or near-to construction projects. The redevelopment in such cases would mean financial loses to the developers and the prices to soar further. Another crunch is the prolonged time taken to get a project get approved from government authorities. This adversely effects the interest of developers in launching any new projects. With such a scenario, the real estate Mumbai property is witnessing a slowdown in any new projects. The highly volatile prices have further aggravated the situation. The property prices in the city go up and down too frequently; this makes it difficult for the builders to buy big plots/land. Such an unpredictability does not work in favor of the developers or the end-users. Buy/rent/lease rooms, flats, bungalows, office spaces, studio apartments, independent floors, godowns and plots at . This fastest growing property portal lists under-construction and completed projects from developers and land owners throughout the country.