Wednesday, March 09, 2011

Mumbai Home Prices May Decline 20 Percent, Merrill Lynch Says

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Home registrations in Mumbai, India’s most expensive real estate market, fell to their lowest in 20 months in November, according to brokerage Prabhudas Lilladher Pvt. Property prices in some markets have surpassed their 2007 peaks, Mahesh Nandurkar, a real-estate analyst at CLSA Asia-Pacific Markets in Mumbai, said in November.

India’s central bank increased the benchmark interest rate to a two-year high in January and signaled further gains in borrowing costs as it raised the inflation forecast.

“With banks reluctant to lend to developers and rising mortgage rates, we expect some of the smaller developers will be forced to sell their inventory at lower prices to generate liquidity, forcing an all-round correction in Mumbai,” Agarwal said.

19 comments:

moserbaerconsumerproducts said...

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Anonymous said...

Contractor's designs are some of the worst in the world. He is the equivalent of Pritam from the film industry. Not one is original.

Coming to the real estate side - as an architect, I can safely say that the number of NEW residential projects has definitely lessened. All we're working on are projects that have already started.

Anonymous said...

@moserbaerconsumerproducts

What a crap!!! The broucher pictures on site itself are not attractive enough, so in actual it will be much worse.

All the best to DLF and hope this project will hold the sinking ship.

Anonymous said...

20% !!!!!

I am willing to put my neck on line and say when the hyperinflationary depression is through the prices would be down atleast 80% from here on.

India has lot of gold, so that will bring a good platform for the rise of phoenix from the ashes.

I think Dubai will host the next generation of financial hub along with Hong Kong.

Mumbai being right in the middle will be a prime area for the global movers and shakers.

All these things for the future though.

As of right now, we are going to see carnage. Just wait for the fireworks in Western Europe and China.

A very long way for things to fall.

BTW isnt Merrill Lynch finished in USA? What the F is it doing in India? Or are the idiotic Indians still lapping up to the western thought.

Pity. As an Indian, I feel sorry for the Indian populace.

Anonymous said...

Mumbai dip in RE prices is impossible. What does Merrill Lynch know? they are bunch of loser and bought over by another set of loser Bank of America.

All these finance companies want to keep publishing their names and instruments, make money out of nothing. These are morden day bhanias and marwaris - lend money. Who shit gives damn about innovation, growth and well being.

NRI -Dubai said...

Having worked for Merrill Lynch for a decade in US and Middle East, I can undoubtedly say that their statements/press briefings in India are politically motivated.
India;s underground economy dictates how business is conducted in India and the govt has little control over it. It is unlikely that the urban centers will face decline in real estate prices unless some kind of revolution takes place.

I envision Mumbai will be a city with infrastructure like Singapore in 10 years time, surrounded by vast Rio like Favelas, Dacca like slums and crime like Detroit or Karachi.

Corruption is deeply entrenched in Indian society and one just wonders how long it will take to start revolts like that are currently in progress in Middle East

Hyro-Glph said...

BloomBerg UTV Report on Realty - http://utvmoney.mangopeople.com/videos/2011/Mar/09/rise-in-realty-prices-reduces-buyers-count/4850

Anonymous said...

Hyro-Glph ,

Fed up seeing all this TV propaganda and reading reports from economics pundits. I am yet to see a slightest indication that the price is on decline. I've been house hunting for the last 2 years. Relying on the reports I kept postponing the purchase and the prices doubled and unaffordable. You just have to talk to to the street corner builders who rely on borrowed marwari money carrying 40% interest and they will tell you the real picture. They can not cope up with the demand

Do much for bloomberg and Merryl lynch. They are all here to suck Indian blood

Anonymous said...

Anon above:
If you want to buy, you'll wait to wait for 4-5 years. You definitely don't want to catch a falling knife. Why do you want to buy when you can rent the same place for
1/4th price. If it is your hard earned money, play safe and wait.

It is very frustrating that all this happening in our times. You want to buy but cannot buy as the market will correct and Govt. is aiding all the scamsters and banksters.

It your money. If you buy now, you will repent all your life as the prices will correct by 60%. It will take a long time. It is your money. You can buy now and cry later or rent now and be happy forever. Your money will yield more than10% return in FDs.

Anonymous said...

They should get rid of all slums in Mumbai and all these slums should then be on the accounts of government provided subsidized living. That will hit tax payers straight and get them straight.

All nonsense in India is because of ambiguous, un-uniform laws, and background dealing. Atleast one these needs to be fixed and fireworks will start.

Now question, will this ever happen? No - Why? Because we have much bigger saver - CORRUPTION.

Anonymous said...

AOL laying off 400 people in India.

But people don't have to worry as India is rich and many high paying opportunities are there.

Anonymous said...

India is poor and many low paying opportunities

Anonymous said...

If you look at the RE prices and Ferrari coming to India, India is not poor. India is a rich country with rich people. People live in houses that cost more than NY city, how can India be poor. People can live even without jobs as there is so much money in India.

Anonymous said...

India is so rich that its streets are made of gold.










...gold colored poop,that is.

Anonymous said...

As long as India can provide cheap labor it will be rich country.

As far as Mumbai RE price declines, it is not possible. Before all this RE increases, many couldnt afford in south bombay, today it is same situation in suburbs. city is expanding. No pre defined happy place, go where you like, work, climate and/or want to be.
If don't like or afford Mumbai - India is huge, don't tell me there is none like or better than Mumbai in India.

Anonymous said...

economist.com/node/18332796

Interesting read.

Anonymous said...

economist.com/node/18332796/comments#comments

Read the comment about recruiters at private companies being given bribes by mediocre colleges .

Sailesh, start updating these articles

Anonymous said...

There is nothing offensive about giving and getting bribes - that is a norm, business as usual.

Play by the rules of the game and chances are bright you will win.

All bribes in / out of hands are calculated in cost of services and products.

F@!# Losers, stop cribbing.

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