Mumbai Residential Real Estate : 2012 Forecast
- Mr. Ramesh Nair
With the market set to bottom by out by the second quarter of the year 2012, we will see the beginning of a recovery in the Mumbai city’s residential real estate fortunes by the second half of the year.
Meanwhile, there is very little scope for appreciation in under construction projects.
In fact, unsold under construction stock will rise significantly. There is a lot of scope for strategic pre-launch bulk investment deals by HNIs (High Networth Indian's) who can predict where the market will head later in the year.
Now, home buyers are not expressing any interest in projects that are perceived to be overpriced, and this trend will continue throughout the first half of 2012. In this period, the Mumbai city’s residential market will be more or less sustained by the sale of affordably priced mid-income flats.
This absorption will be driven by both end users & HNI investors. However, completed high end projects will become costlier by mid year, largely because of reduced supply in this segment. The new DCR (Development Control Rules) regulations would further impact new launches in the first half of 2012.
The reduction of home loan interest rates expected by the second half of the year will help kick start a generalized, though cautious recovery in demand for residential property, leading to an increase in launches.
Many HNI investors would have perceived this trend and already parked their monies in advantageously located residential projects by well-funded developers. Their investments will be amply vindicated at this point.
About the author
Mr. Ramesh Nair is Managing Director (West) in Jones Lang Laslle India.
- Mr. Ramesh Nair
With the market set to bottom by out by the second quarter of the year 2012, we will see the beginning of a recovery in the Mumbai city’s residential real estate fortunes by the second half of the year.
Meanwhile, there is very little scope for appreciation in under construction projects.
 |
| Mr. Ramesh Nair |
In fact, unsold under construction stock will rise significantly. There is a lot of scope for strategic pre-launch bulk investment deals by HNIs (High Networth Indian's) who can predict where the market will head later in the year.
Now, home buyers are not expressing any interest in projects that are perceived to be overpriced, and this trend will continue throughout the first half of 2012. In this period, the Mumbai city’s residential market will be more or less sustained by the sale of affordably priced mid-income flats.
This absorption will be driven by both end users & HNI investors. However, completed high end projects will become costlier by mid year, largely because of reduced supply in this segment. The new DCR (Development Control Rules) regulations would further impact new launches in the first half of 2012.
The reduction of home loan interest rates expected by the second half of the year will help kick start a generalized, though cautious recovery in demand for residential property, leading to an increase in launches.
Many HNI investors would have perceived this trend and already parked their monies in advantageously located residential projects by well-funded developers. Their investments will be amply vindicated at this point.
About the author
Mr. Ramesh Nair is Managing Director (West) in Jones Lang Laslle India.
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