The recent terrorist attacks in Mumbai are anticipated to exacerbate the already declining property prices in the city, notably impacting the South Mumbai region. As the priciest residential market in the area, South Mumbai is projected to experience a decrease in value across all property segments, including rentals, over the next six months.
“It’s too early to say anything now. However, the attack would definitely be a dampener to the sentiment, at least in the initial few months. The attack may also create a ripple effect on the property prices in the suburban market,” stated Pranay Vakil, chairman of Knight Frank India.
Prior to this tragic event, various property consultants were forecasting a slight appreciation in property prices within South Mumbai during the year's second half, spurred by a mismatch in demand and supply. Additionally, governmental initiatives to attract foreign investments have been fostering ongoing interest in establishing and expanding business operations in India. This has undeniably placed considerable pressure on the real estate market, particularly in South Mumbai.
Price dynamics are typically influenced by demand and supply. Until recently, the heightened demand for properties had been a driving force behind the increasing prices in this segment of the city. “The attacks would spread negative sentiments in the property market. New property deals will be very negligible in the next few months,” remarked a senior official from Birla SunLife’s real estate division.