mumbai 2
Real estate research centre Jones Lang Lasalle (JLL) has advised buyers that a major appreciation on property in the next two years should not be expected as returns on property will come only from the third year. According to Ramesh Nair, International Director, JLL India, this advice is more specific about Mumbai market. The average property prices across Mumbai have plateau and sales are sluggish as many home buyers are speculating a correction in 2015. Buyers’ market Builders are seeing an increase in the number of enquiries and expect the industry to see recovery in the months ahead. They are trying to improve sales by offering discounts, freebies, waivers, festive offers and attractive schemes to entice buyers. In some areas, they are offering spot discounts up to 10 percent on the base price of a property to buyers keen on making purchases. In other cases, buyers can negotiate the floor rise charges or get these waived off completely. The JLL advises buyers that if they are not in a hurry to move into a new house, they could book in the pre-launch stage of a project and get very competitive prices. Booking in a pre-launch project in south Mumbai can help get a discount of about 8-10 percent easily. In some eastern suburbs, a pre-launch project is offering a price of around Rs8,000 per square feet (psf) whereas a completed project nearby is charging Rs 14,000 psf. The schemes continue to remain popular as they make easier for developers to attract customers and cover the interest payments the latter have to pay to the banks; buyers only pay a small percentage of the total amount and get a relatively risk-free investment opportunity. Those interested in peripheral areas would get a better price appreciation than established locations. They can look at Ulwe, Kamothe, Karanjade and Dronagiri in Navi Mumbai. These areas could see moderate growth in coming years thanks to the upcoming international airport in Navi Mumbai and increased connectivity to Mumbai through the upcoming Mumbai Trans Harbour Link . Sewree is another area in Mumbai, which could see moderate appreciation thanks to the MTHL. Parel, Chembur, Kanjurmarg and Powai could see appreciation primarily on account of excellent connectivity and end-user demand. Peripheral areas like Vasai-Virar, Boisar, Dahanu and Palghar could also see growth thanks to the upcoming bullet train project connecting Mumbai and Ahmedabad. Virar would furher benefit due to the upcoming Virar-Alibaug multi-modal corridor and the proposed elevated rail corridor connecting t to Churchgate. Another project that could lift up property prices in Vasai and Virar is the proposed Delhi-Mumbai Industrial Corridor.

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