South Mumbai’s sale of high-end luxury homes drops
High end properties sale in South Mumbai had dropped following a gloomy economy. Property appreciation in South Mumbai had dropped 10% from 30% last two years. Rental yields had also fallen by more than half. Akhil Kapur, owner of real estate brokerage company AJ Housing said, "All the newer projects in South Mumbai are in the ultra-luxury segment and it's difficult to find buyers for these higher configuration and big-ticket homes in the current market."
According to South Mumbai real property investor Puneet Sejpal said, "In Mumbai's real estate market, buyers can't sell a house until a project is complete, compounding the problems of those who have invested in multiple houses. Newer projects that are marred by delays and longer exit-duration clause are not investor-friendly. The lock-in period is so long that sometimes you are bound by the developer to not sell a house, till the project is delivered."
Property consultants in India said that the sale of new property had dropped 30% in the past 8 to 12 months. This indicated that fewer investors and end-users were willing to purchase expensive homes. An investor in the real property estate in South Mumbai said, "Many of us are making money elsewhere to be able to pay our dues. We are unable to sell them as there are no buyers in the market."