Mumbai is one of the top cities in India. This is the reason why the Mumbai Property Price is higher than any of the other cities. According to the experts, there should be a price correction to boost the sentiments of the buyers. Though there are no buyers also, there will be many investors in the city as all of them are sure of better returns from their investment in the city. Let us however see how the prices affect the demand for properties in this city.
Along with the rise of property prices, the demand falls down. This is what usually happens everywhere and this is the same case in Mumbai too. The demand for Residential Properties in Mumbai has fallen by many percentages over the years. This is not a silly thing. When every other state improves their home sales, it was just a single percent here. On the other end the city saw the prices rising by three percent.
There is no excuse for any of them. The rising Property Rate in Mumbai really hurt the feeling of the buyers. The buyers are not coming forward to buy out any of the properties now. Property experts say that this can be boosted if the rates are offered. The builders are also much affected by weak sales and so they have started offering various freebies and discounts.
How these freebies and discounts affect the sales is a thing which we have to wait and see. The recent reports show that despite the freebies and discounts, the buyers are not coming forward. The buyers still feel Mumbai Property Price as unaffordable to them. The prices have already gone far beyond the reach of the buyers and so they are not ready to buy out any of the properties.
There is in a same way a rise in the rentals for the Residential Properties in Mumbai. This makes living inside the city a difficult task for the people and so the people are now moving to the nearby suburbs. As the demand in the suburbs is rising, the prices in these areas are also rising. The investors too feel that it is better to have investments in these suburbs where they can buy out properties at lower rates.
Compared to the Property Rate in Mumbai, the rates in these suburbs are far lower. But in the growth rate, they are far better than the metropolitan city. Thus the investors feel it right to invest in these locations than any other. Interestingly though the people say that the prices must be brought down in Mumbai, those who own any property do not support this. In fact they would not sell out any of their properties in case if there is a price correction.