If you were looking to buy 1 BHK flat in Mumbai, you should definitely take note of the present slump in the property market in Maximum City. Mumbai or the City of Dreams is one of the costliest places for real estate. However, property sales have slumped all across the country in terms of tier I cities and this is a situation that has been plaguing the realty sector overall. Delhi, Hyderabad and Chennai have witnessed steep drops in realty sales while Mumbai has seen an approximate drop in sales to the tune of at least 2% as per IndiaHomes property. This is mainly because the property markets in Mumbai have been stretched and inflated a little too much for the comfort of the customer.
End users and investors do not want to pick out residential flats in Mumbai owing to poor sentiments and the high prices of the same. Property sales have declined due to this very basic reason. There are not many options available in terms of low budget flats in Mumbai and this has deterred buyers from investing in high end or mid-range properties in the city. There is a huge gap between present market rates of property and end user expectations. Buyers in Mumbai are still waiting for a much needed price correction to happen and are geared up to invest thereafter.
There are several builders in Mumbai who are having to deal with piled up inventory as a result of declining sales volumes and steadily lowered sales. The Central Government has not yet implemented some radical steps to fast track the realty sector and disposable income of people have not increased as much as desired. As a result, the latent ineffectiveness of the market will definitely hamper sales for quite a few years to come. Developers are still not bringing down prices in Mumbai though some are offering added offers and discounts to lure buyers. Developers are offering some other sops including registration charge waivers and stamp duty concessions.
Construction activity has been increasing though in spite of such a scenario in the ultra-luxury segments of the country along with affordable segments which are steadily witnessing some traction in the market. Apartments that are priced lower than Rs. 50 lakh are still in demand as investors are willing to go the affordable way. Average property prices have also gone up in the Mumbai metropolitan region and Greater Mumbai and the latter area has witnessed a rise in prices to the tune of almost Rs. 1.32 crore for a 2 BHK apartment. The costs of land are quite high in Mumbai and buyers already have to pay several governmental duties and taxes as a result. This is another deterrent for buyers in case of excessively priced properties in the mid-range segment. Capital values have appreciated to the tune of approximately 8-11% on an average in several areas of Mumbai in addition to the Extended Eastern Suburbs, Thane and Navi Mumbai. First time buyers should select projects with care so as to maximize investment value in the long term.