Mumbai: Good news for Mumbaikars looking for a home that property experts in the city are predicting a correction in real estate prices.
"We are seeing today a 25-30 per cent fall from 2010 levels, which was 20-25 per cent higher than the 2008 levels, so in a sense the prices are going back to 2008 levels and the process is on," said Ashutosh Limaye, Director (Strategic Consulting), Jones Lang LaSalle.
Experts say high prices and too many big ticket projects have brought down demand. That despite huge discounts and freebies, there are few takers. At a recent property exhibition, free LCD TVs were on offer for spot bookings. But while buyers are interested, they are also hesitant.
The prices are not affordable for middle class, some projects are well priced, some are much higher.
But price correction might not be smooth. While some developers are reportedly postponing sales hoping prices will bounce back, some others are waiting for government clearances before launching new projects. Also, hike in raw material costs and home loan rates have also affected demand.
"The government should think of giving income tax benefits on home loans, which they have done, but I think they should consider Mumbai separately because prices are higher in Mumbai," said Boman Irani, Chairman exhibition committee, MCHI.
Meanwhile, the chief minister has advised of competitive pricing for state housing schemes, which could push up prices.
Property experts say that with the falling demand, developers will have no option but to accept correction. But with builders not selling and buyers waiting for a correction, right now it seems like a case of who blinks first.