Property rates in South Mumbai have ascended, making an apartment cost around Rs 7.5 crore. It results in pile up of inventories in the area to such an extent that it will take almost a decade to sell many units over there.
South Mumbai is one of the most expensive areas in India when it comes to property. Over the past one year, only 1,250 new residential units were sold so far. It is less than even 3% of total property sold in whole Mumbai Metropolitan Region (MMR), which are 43,000 units.
Individuals and companies are shifting to central Mumbai and business district like Bandra Kurla Complex and its adjoining areas. As a result of it, rates of commercial and residential property have fallen in these regions. Subsequently the pricing of few of these apartments has delayed many high-end buyers at that moment.
Circumspect buyers prefer to wait and observe for rebound in the economy in next fiscal. That is the reason that economic slowdown has also been a dampener over the past few years.
Former president of Maharashtra Chamber of Housing Industry, Mr. Paras Gundecha expressed his views on pricing of super-luxury residences which is unaffordable even to the high-end buyers. He also pointed out that the bulk of the demand can be observed for smaller apartments in more affordable localities in the suburbs. Mr. Paras Gundecha is a builder and head of Gundecha Group, which have a leading real estate subsidiary, Gundecha Builders.