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Mumbai Real Estate Prices Started Falling

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Mumbai Real Estate Prices Started Falling

Last updated: April 4 2021
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  • Re : Mumbai Real Estate Prices Started Falling

    Originally posted by one2connect View Post
    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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    • Re : Mumbai Real Estate Prices Started Falling

      Originally posted by simsagar View Post
      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.
      Last edited September 23 2012, 04:05 PM.

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      • Re : Mumbai Real Estate Prices Started Falling

        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 View Post
        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.
        Last edited September 23 2012, 07:52 PM.

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        • Re : Mumbai Real Estate Prices Started Falling

          I hope the prices fall but they haven't yet. Investors have become rich overnight !

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          • Re : Mumbai Real Estate Prices Started Falling

            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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            • Re : Mumbai Real Estate Prices Started Falling

              Originally posted by donkeykong View Post
              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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              • Re : Mumbai Real Estate Prices Started Falling

                Originally posted by darkhorse View Post
                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.
                Last edited October 23 2015, 12:21 PM. Reason: Text formatting.

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                • Re : Mumbai Real Estate Prices Started Falling

                  Originally posted by pratikpr View Post
                  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.
                  Last edited October 23 2015, 07:54 AM. Reason: Text formatting.

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                  • Re : Mumbai Real Estate Prices Started Falling

                    Only if wishes were horses...

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                    • Re : Mumbai Real Estate Prices Started Falling

                      Originally posted by darkhorse View Post
                      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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