Investment in property is a very arduous task and due diligence is required. There are lots of factors that must be taken into consideration as making the investment at the right time is very crucial. Like any other business, it goes through price fluctuation. One must analyze the current trends and make comparisons with earlier trends to understand the market situation. The prevailing trends set up the price in the market.
The demand for the properties in Mumbai was very sluggish in the last few years. The price was almost constant for the last two years and has shown minor growth in the last few months. It can be attributed to the coming of new and stable government at the center. Still, the change was very small to boost up investors’ demand.
According to the realty experts, the price of the properties seems inflated and overstretched which has resulted in a decline in the sales. Investors as well the end users are waiting for the price correction to happen. The prevailing rate and the expected price show a very wide gap. In spite of the low sales volume, the property developers are not decreasing the price. Instead, they are trying to attract the buyers by offering waivers on the stamp duty and registration fee.
Instead, they are trying to attract the buyers by offering waivers on the stamp duty and registration fee.
The builders’ activities have increased in affordable and ultra-luxury residential segments. The demand is more for the flats costing less than 50 lakhs. Lack of land availability has made it very costly for acquisition.
Add to it the several taxes which make the property unaffordable by the buyers. This observation was made by the general secretary of Maharashtra Chambers of Housing Industry (MCHI).
The resale property market is also headed for correction as it is finding few takers due to new launches being made at much cheaper cost. The registration data shows the preference for new launches to benefit from the low price on offer.
Lack of quality property and complicated ownership structure has to lead to lower demand in Mumbai’s central business district. Limited infrastructure and transportation issues will result in coming up of mini CBDs leading to the dispersion of the offices.To know more visit www.propknack.com