Mumbai Suburbs to Witness Property Price Cool Down
Property prices in Mumbai's suburbs are expected to experience a significant cool down, with a predicted drop of 10% to 20% by March 2009, according to real estate consultancy firm Jones Lang LaSalle Meghraj.
Supply and Demand Imbalance
- Heart of Mumbai: No signs of price drops due to almost zero supply.
- Beyond Borivali, Thane, and Navi Mumbai: Excess supply outstripping demand, leading to anticipated price corrections.
Predicted Price Drops by March 2009:
- Borivali: 10% decrease expected
- Thane and Navi Mumbai: 15% to 20% drop anticipated
Extended Impact on Real Estate Industry
- Possible price correction beyond Thane, albeit with a longer recovery timeline for the industry as a whole.
National Perspective
- Punjab: Worst hit by the current macroeconomic environment, with property prices already down by 15%.
- Tier-II Cities (Indore, Nagpur, Raipur):
- Sales have decreased by 10% to 15%.
- Potential for an additional 5% to 10% correction if sales do not pick up during Diwali, as noted by Anuj Puri, Chairman and Country Head, Jones Lang LaSalle Meghraj.