There is a 17% rise in Mumbai property price in the first quarter of this year. According to source, high cost of acquiring land and increasing cost of construction prevents builders from cutting prices. The Mumbai real estate trend shows decline in sales volume but there is no correction of price correction.
Recently, an apartment in south Mumbai, 28th floor facing Arabian Sea set a record-setting rate in the deal.It was sold for USD 6.8 million (Rs 39 crore). The real estate experts doesn’t foresee a decline in price any time soon.
The real estate prices in the city compete with other Asian centers such as Singapore and Hong Kong. According to industry estimates, sales are down by more than 40% over the past one year but builders are not ready to reduce the price due to increasing cost of construction. High mortgage rates created a cash crunch for buyers.
According to source, earlier there were 10 buyers for one apartment in Mumbai, now there are 5. Now the buyers are more genuine homeowners and less speculators.
Source: CommonFloor News