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No Property Price Correction in Mumbai Before 2015

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No Property Price Correction in Mumbai Before 2015

Last updated: August 15 2021
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  • No Property Price Correction in Mumbai Before 2015

    It was looking like prices are up for correction, after RNA Exotica and few others

    However last couple of weeks builders are lauching at higher prices:

    Ekta Tripolis in Gorwgoan West 12700

    L&T Powai 15500 SOLD OUT

    BLUE MOON LODHA SOLD OUT

    RNA EXOTICA ALL PREMIUM FACING(VASTU COMPLAINT) APARTMENTS SOLDOUT

    Investor/buyers are grabing opportunities of some correction and jumping on it

    It seems no major correction will be happening before 2015

    Share your thoughts
    Last edited January 12 2017, 11:08 AM.
  • #2

    #2

    Re : No Property Price Correction in Mumbai Before 2015

    Perfect analysis,

    Builders are not even offering 2% discount even after putting token cheque.

    Another trend is setting up... for example, Kabra galaxy and Regency heights in Bramhand - They are building the units first and then selling in the end. Realising all profit in their own pocket. Kabra is coming up with 3rd tower with money coming frm Tower 1 and 2.

    Nothing wrong in that - but see how the industry is changing.

    Ultimately, the eager buyers in 2004 to 2008 have made the builders sitting on large cash and now they are not in need of any money.

    Sheth literally told me - they dont need money at this point of time.

    So where is the correction ?

    People are buying with or without smiling face. Once they make downpayment of 20 Rs for 100 Rs flat and 80 Rs loan, and if Interest for 1 year is going to be another Rs 10. How come property prices will go below 85 Rs ?

    Why the new buyers will sell at less than 85 Rs?


    So dont expect any price correction soon, unless sky falls.

    I am going to cease the deal in another months time, as mentioned in my earlier post.

    Comment


    • sunita3329
      sunita3329 commented
      Editing a comment
      If anything, prices have only been moving upwards, if even marginally. According to a recent report by a global major, Mumbai is at number 24 position on the list of most expensive cities in the world, with luxury property prices growing at the rate of 0.8%
  • #3

    #3

    Re : No Property Price Correction in Mumbai Before 2015

    Lodha blue moon selling at 30-40% lower than market price and RNA exotica reducing prices by 30% and lodha giving a discoung of 5lacs in 5 of their projects in my opinion is a price correction..

    lodha guys are calling me every 2-3 day for different projects. builders have been creating artificial scarcity by using the sold out techniques. How much of the sold out is really true, no one knows....Not every builder might reduce prices..But there are examples of builders who are reducing prices...

    people can afford only until a certain amount..once the prices go beyond a point, people won't be elibigible to get the 80% loan..for a 3cr property, down payment is 60lacs and monthly emi is 2.5lacs...how many people can buy at that price...now consider that going to 6cr after 3 years, downpyament 1.2cr and monthly payment 5lacs ....do you think the salaries are going to increase at the same proportion...

    I don't know whether prices would keep going up or come down or remain at the same level...But, if they go up, I am not sure how long people can afford it...

    Comment

    • #4

      #4

      Re : No Property Price Correction in Mumbai Before 2015

      We all know about SOLD out strategies so that is not new. When I had been to see Lodha Luxuria (Thane) and Aqua (dare I say, in Mira Road) a few years ago a month after launch, I was told that most of the flats were sold out........ We now know what the inventory is like in these projects. just because they scream out SOLD OUT, that doesn't mean anything.

      I am based in the UK, and am regularly getting calls about pre-launches especially from Lodha.

      The ground reality about realty struck me last week when a known broker from Borivali West told me over the phone to avoid new projects. He said he has stopped recommending under construction projects as he believed these projects could take more than twice the time they quote. He said he could get me a deal if I insisted but warned me about new projects. I was enquiring about Parinee Adney and Happy Homes (both I.C.Colony). He said he was getting enough headache from previous customers who were blaming him for work being stuck.

      Was surprised that he actually told me to wait and watch for 6 months. Never ever thought a broker would say that in Mumbai. My cousin brothers had bought resale flats from him in the past so he kinda knows our family.

      These builders will continue playing mind games because it has been working for the last few years, don't think this strategy will continue working for long. Am sure they are going to find new mind games but the truth remains that there aren't enough people who can afford to buy all these these match box flats being built in every knook and corner.

      Correction is inevitable or should I say, imminent.

      Comment

      • #5

        #5

        Re : No Property Price Correction in Mumbai Before 2015

        have some patience

        Originally posted by sanjeev1008 View Post
        It was looking like prices are up for correction, after RNA Exotica and few others

        However last couple of weeks builders are lauching at higher prices:

        Ekta Tripolis in Gorwgoan West 12700

        L&T Powai 15500 SOLD OUT

        BLUE MOON LODHA SOLD OUT

        RNA EXOTICA ALL PREMIUM FACING(VASTU COMPLAINT) APARTMENTS SOLDOUT

        Investor/buyers are grabing opportunities of some correction and jumping on it

        It seems no major correction will be happening before 2015

        Share your thoughts
        Originally posted by sanjeev1008 View Post
        Heard the market condition is very bad, DB Realty is heard to offer 11500 per sft +50 floor rise for almost completed project Orchid woods. Anywbody had heard this?

        Well my thoughts are that you need to wait for some time.

        Just a few weeks back you were saying that market condition is very bad?

        Don't be so fragile man and have some patience.
        Last edited December 1 2015, 05:45 AM. Reason: Text formatting.

        Comment

        • #6

          #6

          Re : No Property Price Correction in Mumbai Before 2015

          BTW check out below two articles.

          1) NO MAJOR CORRECTION SEEN IN 2013 MUMBAI REALTY PRICING DATED 24TH DEC 2012

          2) MUMBAI FOR THE FIRST TIME WITNESSES PROPERTY PRICE CORRECTION DATED 29TH JAN 2013


          http://www.google.com.sg/url?sa=t&rc...hH0NS9zzNLTsbQ

          http://www.google.com.sg/url?sa=t&rc...NeLVUeB-2xTUVA

          Comment

          • #7

            #7

            Re : No Property Price Correction in Mumbai Before 2015

            ‘Price drop in Mumbai is inevitable’

            The residential real-estate market in Mumbai stagnated in 2011-2012, as buyers put off purchases due to non-affordability and atrocious rates quoted.
            Most of the under construction projects are stalled or moving at a very slow pace, liquidity crunch is clearly visible.

            My take;

            ‘Price drop in Mumbai is inevitable’

            Cheers.

            Comment

            • #8

              #8

              Re : No Property Price Correction in Mumbai Before 2015

              Price drop in Mumbai inevitable

              Developers will have to cut prices to reduce inventory, says a Knight Frank study.

              The residential real-estate market in Mumbai stagnated in 2011-2012, as buyers put off purchases on hopes of a drop in prices in the near future.

              According to Knight Frank Research’s study of the residential market for June, the wait could pay off.

              Read more at:
              http://www.google.com.sg/url?sa=t&rc...DeOmdNF-qVf8cw
              Last edited March 15 2016, 12:47 PM. Reason: posted link content

              Comment

              • #9

                #9

                Re : No Property Price Correction in Mumbai Before 2015

                Mumbai: Is a property price correction in order?

                http://www.google.com.sg/url?sa=t&rc...wiTe4FC6GfKfDw
                Last edited March 15 2016, 12:48 PM. Reason: News video Headline

                Comment

                • #10

                  #10

                  Re : No Property Price Correction in Mumbai Before 2015

                  Mumbai: Is a property price correction in order?
                  http://www.google.com.sg/url?sa=t&rc...wiTe4FC6GfKfDw

                  Correction in the housing market may be round the corner

                  NEW DELHI/MUMBAI/BANGALORE: Home prices in Mumbai softened in the December quarter while price growth in other Indian cities slowed, two real estate consultancy firms have said, reinforcing speculation that a correction in the housing market could be round the corner.

                  According to property consultancy CBRE, prices of new homes in India's financial capital Mumbai were down 2-5% in the October-December period from the previous quarter.

                  Read more at:
                  http://www.google.com.sg/url?sa=t&rc...mIjyjiWSiyHaoA
                  Last edited March 15 2016, 12:50 PM. Reason: Posted link content

                  Comment

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