It seems prices has started falling in Mumbai, many builders have started quoting less than what is being advertised, also many flats owners have reduced their prices to sell their flats as soon as possible before the price drops more, any first hand input welcome...:D
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  • Just a FYI... there is an air conditioned metro service, which connects Gurgaon to Karol Bagh in 40 minutes. and thats what precisely missing in Mumbai... the infrastructure...:)
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  • Not really.
    Im a Mumbaikar and currently living in Gurgaon for a few years.
    In Mumbai, my 3BHK flat with no amenities (in Andheri Lokhandwala) costs almost the same as my 4BHK rental in Gurgaon which has all amenities, and in Golf course road (the most premium location in Gurgaon).
    And after trying for years to purchase a second investment property in Mumbai, I got fed up with the prices and invested last year in the most upcoming location of Gurgaon (called Golf Course Extn road), I got a 4 BHK with luxury specs in a budget of 1.3 Cr. What undersconstruction could you have bought for 1.3 Cr in Mumbai last year ? Probably a plain, no frills, 2BHK in Borivali.

    Mumbai offers no value currently for end-users or for investors. Many people I know in Mumbai are buying their end-use/investment properties in Noida/Gurgaon/Pune.

    Originally Posted by ruchika1
    best location of gurgaon ?
    best locations of gurgaon r as expensive (if not more) than mumbai.
    2100 sq ft in one of good soceties will cost u not less than 3 crores +

    the one which u hav booked for 1.8 cr must b under construction and in a compartitively new sector of gurgaon
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  • Originally Posted by simsagar
    thanks Amitau for the decision to NOT buy property in Mumbai but chose Gurgaon as ur base-location. Now, we have one person less in the purchasing list of home owners - hope to see many more to join your list soon.

    BTW - Mumbai is Maya Nagari - dreams come true and one can make tonnes of monies also (if lucky favors ur hard work) - well, if u make monies here than as per the rules of nature nothing can be moved out of the city limits.

    Ground reality is that Mumbai has limited land mass and demand is high hence the exhorbitant property prices. Very few are fortunate to chose some place outside Mumbai as base-location - ask a typical Delhiite to move out GK-1 or GK2 types enclaves- will they move out? Naa!!

    Mumbai ek sone ka pinjra hai aur shayad tum bhi yahaa fas gaye ho...:):):)

    Partially true., but I have a few questions here.

    1. Who says mumbai has limited land? Godrej has 4000 acres in Vikhroli, suppossedly a premium location. Go to any builder in Thane and he will have anything between 70-300 acres land bank. Enough and more land available in the mainland if Nhava-sheva link is not stalled by vested interests. Similarly for land under the port trust. The scarcity of property is no doubt thr, but it is created artificially and deliberately by the rogue combination of builder-land mafia-politician-bureaucracy to serve their interests.

    2. Demand is no doubt high, but at what price? Are you telling me that thr are hordes and hordes of ppl willing to buy a small 2BHK flat in Thane at 1 to 1.3 cr and then drive 40 km to and fro to the city everyday for work?

    By the way, last statement is so damn true for most ppl.
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  • Originally Posted by sh-saxena
    .
    In Mumbai, my 3BHK flat with no amenities (in Andheri Lokhandwala) costs almost the same as my 4BHK rental in Gurgaon which has all amenities, and in Golf course road (the most premium location in Gurgaon).


    A 3BHK in near premium location of Mumbai (Lokhandwala) is as costly as 4BHK of Gurgoan? WOW Gurgoan is very expensive.

    Thanks for letting us know I would never look for an investment in Gurgoan.

    Saying I have invested in Gurgoan because Mumbai is very expensive would be similar to saying I have invested in Hyderabad because London is very expensive.
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  • Originally Posted by one2connect

    Saying I have invested in Gurgoan because Mumbai is very expensive would be similar to saying I have invested in Hyderabad because London is very expensive.


    saying that means that instead of buying an overpriced stock he decided to buy something which seems more fairly priced/offers better value. From an investment perspective that makes perfect sense.

    In any case it doesnt make any investment sense to buy in Mumbai at current levels, in most areas the maximum upside would be 15-20% at max.
    Ofcourse if it is for end use then its a different story altogether.
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  • Originally Posted by simsagar
    BTW - Gurgaon is not a metro hence one can't compare Gurgaon with Mumbai.

    Just becos couple of yrs ago Gurgaon got noticed due to proximity to ND - ppl started investing in gurgaon.

    Gurgaon is approx abt 31km from Karol Bagh western Delhi which if mapped to Mumbai maybe Vasai/Virar or Thane GB Road. Once can surely get 3BHK for less than 1.5cr in any of these locations with gud social and civic infra.

    It is incorrect to compare Gurgaon RE prices with Mumbai city / Suburb land prices.


    Your comparison of Gurgaon with Vasai/Virar is also wrong. GGN's most developed sectors are ~20km from New Delhi station, this is same as South Mumbai to Andheri. Delhi airport is very close to GGN just like Andheri. It has lots MNC offices (like BKC), best malls in NCR region. I would say GGN to Delhi is like what Andheri is to Mumbai. And not to forget the connectivity to Delhi by NH8 and Delhi Metro.
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  • Yes Gurgaon is defn not cheap anymore and getting more expensive by the day but it still offers value compared to Mumbai which is a totally lost case now.
    My Mumbai flat is a no frills, old flat, thats equal in capital value to the one I rent in Gurgaon, in the most premium area, one of the best apartment complexes with all amenities, not to mention the size is almost double of Mumbai one so if I were to buy for self-use, I see more value in Gurgaon than Mumbai.
    For investment, in my budget of 1.25 Cr I had choice of underconstruction 2BHK in Mumbai in some far flung location with some shady builder or underconstruction 4BHK in Gurgaon in the most upcoming area with the best rated builder. I went for Gurgaon and already have an upside of 45% in less than an year, that makes me a happy investor.
    And as an investor it really doesnt matter whether you invest in Mumbai or Gurgaon or Hyderabad or London, only ROI, safety of investment and easy exit option matter.

    Originally Posted by one2connect
    A 3BHK in near premium location of Mumbai (Lokhandwala) is as costly as 4BHK of Gurgoan? WOW Gurgoan is very expensive.

    Thanks for letting us know I would never look for an investment in Gurgoan.

    Saying I have invested in Gurgoan because Mumbai is very expensive would be similar to saying I have invested in Hyderabad because London is very expensive.
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  • I hope the prices fall but they haven't yet. Investors have become rich overnight !
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  • bhai sabar rakho....people who are raising their voice are hopeful of off loading their inventory to people who are sitting on fence. As I said not everybody can be a investor (I don't know where they get this crap from) these people would be rich only on paper. Ultimately every person would be having 2-3 houses as investment, and would be waiting for end users - jinke loans hi nahin pass ho rahein hain and neither they can get 20% down payment.
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  • Originally Posted by donkeykong
    I hope the prices fall but they haven't yet. Investors have become rich overnight !


    there's too many vested interests in Indian Real Estate to let prices fall. At best prices will stagnate at their peaks and wait till people's purchasing power catches up after which they will start rising again.
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  • Originally Posted by darkhorse
    there's too many vested interests in Indian Real Estate to let prices fall. At best prices will stagnate at their peaks and wait till people's purchasing power catches up after which they will start rising again.

    I agree the prices will stagnet. But I feel that there will be deals happening at lower than market rates may be at 5%-10% depending on negotiation skills of buyer and desparation of seller.

    Although, reduction in prices on paper will do more harm than good for everyone I feel.

    What if Banks get jittery of falling prices and reduce the loan % from 80% to 70% or builders bail-out of under construction projects leaving the people who bought flats at pre-launch in limbo.
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  • Originally Posted by pratikpr
    I agree the prices will stagnet. But I feel that there will be deals happening at lower than market rates may be at 5%-10% depending on negotiation skills of buyer and desparation of seller.
    Although, reduction in prices on paper will do more harm than good for everyone I feel.
    What if Banks get jittery of falling prices and reduce the loan % from 80% to 70% or builders bail-out of undercontruction projects leaving the people who bought flats at pre-launch in limbo.


    Agreed, I would imagine a lot of deals would happen with investors at less than builder rates. So, although builders do not reduce rates on paper, investors will cash out at lower rates once they prices not rising and no further gains in their investments.

    Banks reducing loan% will only worsen the situation as buyers will have to pony up more money up front thereby reducing affordability resulting in fewer buyers in the market and more pressure on prices. The last thing banks want in a bunch of foreclosed homes in their hands, it is a lose-lose situation for everyone: home-owner loses his equity, banks have mark-downs, investors lose their shirts and builders will be competing with bank-forclosed and investor properties who would all be desperate to cash out leading to builders bailing out of new projects. Vested interests such as politicians heavily invested in RE would also see their net worth eroded and find it difficult to cash-out when they need the liquidity e.g. election time. All these forces would rather act in unison to atleast give the appearance of a stagnant market rather than a market in free-fall.
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  • Only if wishes were horses...
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  • Originally Posted by darkhorse
    Agreed, I would imagine a lot of deals would happen with investors at less than builder rates. So, although builders do not reduce rates on paper, investors will cash out at lower rates once they prices not rising and no further gains in their investments.
    Banks reducing loan% will only worsen the situation as buyers will have to pony up more money up front thereby reducing affordability resulting in fewer buyers in the market and more pressure on prices. The last thing banks want in a bunch of foreclosed homes in their hands, it is a lose-lose situation for everyone: home-owner loses his equity, banks have mark-downs, investors lose their shirts and builders will be competing with bank-forclosed and investor properties who would all be desperate to cash out leading to builders bailing out of new projects. Vested interests such as politicians heavily invested in RE would also see their net worth eroded and find it difficult to cash-out when they need the liquidity e.g. election time. All these forces would rather act in unison to atleast give the appearance of a stagnant market rather than a market in free-fall.


    You touched upon the point of politician investment in real estate. Remember when was the last time prices corrected - 2008, just a year before 2009 general and state elections. Even the prices started appreciating at a fast pace from 2004-05 the year in which Congress came to power at the center. Strange co-incidence.
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  • Mumbai property prices will never come down
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