Mumbai residential property prices decline 6.8% in 2018

Residential property prices in Mumbai, the country's most fashionable property market, fell by nearly 6.8 percent in 2018 due to a sharp increase in supply. The year was marked by a marginal growth of 3% in sales volume, to 63,893 units, while the total number of launches increased by 74,363 units, which corresponds to a 220% increase. It is said that residential property prices decline Mumbai 2018.

The significant increase in the number of new launches is attributable to the release of supply, which had been delayed due to many regulatory aspects. The temporary stay of the building ban imposed in Mumbai from March 2018 due to landfill problems has been a major catalyst for growth.

"Mumbai experienced a significant 7% drop in average prices in 2018, which, combined with a reduction in the size of new launches, reduced the average ticket size in the city. As a result, buyers have a better value than a few years ago. The hangover from demonetization, coupled with structural changes such as the GST and RERA, had resulted in a property prices falling in Mumbai in the Mumbai metropolitan area in 2017. Most of the problems were swept away by dust. , supply volumes were released until 2018.

Political incentives such as Prime Minister Awas Yojna (PMAY) and the Credit Grant Program (CLS) have helped to drive demand into the affordable housing segment. Supply has therefore been calibrated during this period.

A significant change in strategy has been observed in new launches. Compact homes are becoming ubiquitous; developers have chosen to reduce the average size of apartments to make the overall size of the ticket affordable. The MMR region experienced a decline of about 25% in the size of new launches in 2018 compared to five years ago. But Mumbai property prices decline day by day.

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Developers offering attractive discounts to woo buyers:

the two destinations of life sought by India - NCR and Mumbai - were the most affected by the current housing crisis. While residential property falling in Mumbai for the first time in recent history, NCR has seen its rates plummet by 6% since 2015 due to the loss of interest from investors and builders sitting on incomplete projects.

Bangalore and Hyderabad enjoyed some appreciation, while in Chennai, price increases were less than 5 percent. NCR was the hardest hit because investor participation, as well as the deployment of black money, was very high. The prices were absolutely speculative because Delhi has a huge availability of land. In addition, the uninhabitable sites were sold at high prices.

The woes of the builders

the blow to the real estate sector has been unsold properties. According to industry estimates, more than 2.67 lakh residential properties in the Mumbai Metropolitan Area (RMM) remain unsold, of which 1.05 lakh are in Mumbai itself. Sales have fallen sharply; developers do not consider new projects because their priority is to sell existing properties that pile up. We have entered a new regulatory regime and compliance process, so a large-scale re calibration of the entire sector is needed. Intuitively, there is absolutely no movement on the market. One of the reasons for this "lack of movement" is the general feeling that real estate prices will continue to fall. For the real estate sector, the holiday season of 2017 was worse than last year. However, there are transactions in budget housing and medium-sized housing, which is good for the long term. According to India Real Estate's annual report released this year, it will take builders at least two years to find buyers for unsold projects, and the number of new project launches has dropped by 36% over last year .

Bonanza for buyers:

some of the projects proposed by the developers were not known in the real estate sector of Mumbai.For example, Sai Estates, one of the biggest ticket promoters in the city, is offering a free apartment for the purchase of three apartments of all sizes for its Kandivali project.

The same developer also offers a kilo of gold, while Sobha Developers offers a gold value worth Rs 1.3 lakh instead of advance bookings. Times are such that builders need to give more than just club membership to apartment buyers. The big properties are unsold and, unless the incentives are high, people will not buy because everyone seems to think that prices will fall further.