Real estate in Mumbai was dominated by resale properties up for grabs, at many different points of time. They have been in great demand considering the location of the property. But price has also been the factor that deterred many buying decisions. Most resale properties are at least 30% costlier as compared to new projects.
Real estate in Mumbai was always pro-resale units even though they were old properties with very little construction value, which would mean an individual might have to spend additionally on renovation after purchasing the property. The last year’s sale revealed a completely new trend which encouraged developers to invest in bigger and better projects. The transaction volume of secondary apartments for sale in Mumbai have been alarmingly low. The high prices and competitive market has failed the return on investment that one might receive on resale properties.
Real estate in Mumbai has witnessed a sudden shift with great options of new projects especially in Western and Central suburbs of the city. The high pricing of a secondary apartment for sale in Mumbai are usually dependent on two things essentially—the location premium and low maintenance charges in resale properties. The location premium is a dwindling concept in today’s Mumbai market. If you compare the price of new launches in Lower Parel, Sewri and Mulund and the price of resale properties in the Goregaon and Andheri region there is very little difference when it comes to pricing. Also areas like Parel and Mulund are close to the business districts in Mumbai. The stress of long travel hours have further been reduced by new infrastructure projects.
Apartments for sale in Mumbai and its eastern suburbs are also seeing fast paced development. Today areas like Chembur, Mulund, Powai etc. are not considered as inaccessible anymore. Projects like the Eastern Express Highway and the Eastern Freeway have further reduced the travel time, encouraging residents to move to these localities.
To add on this improved connectivity the Mumbai Monorail Project and metro project will change the way we look at the real estate market. The secondary apartments for sale in Mumbai will probably be the worst affected when all the major infra projects will be fully operational. The symptoms are already evident, without a price correction it might be tough to revive this market.
The price correction will not only push the market in the right direction but will improve home buyer sentiments in the region. To most resale property prices are too high to make a buying decision. The buyers who already have properties in Central Mumbai will benefit from understand the market and price trends and infusing and withdrawing investments at the right time.