Will Mumbai property prices ever come down
It’s a question every home buyer has in mind when he gets pesky messages and calls with numerous offers every few days. The Mumbai property market in August 2015 is ripe with various news articles and research reports suggesting that the markets will fall.
The truth here is that, if you look at the consumer side, the majority of investors who used to be active have settled down and matured. They have entered at far lower levels, got their possession and now sitting on the lease rent income and content with their appreciation.
Now, let us add more Floor Rise, Car Parking, Development Charges, Legal Charges, Infrastructure Charges, club house, taxes, possession charges etc. so this can be an additional 5 to 10% or even more than the base consideration value, so this means the cost of the acquisition is not just the base price but an additional cost of 20 to 30% and if you go in for higher floor, this cost can further spiral up. While exiting the investor is not getting the desired runs in a lot of projects. The only investments, which can offer return is of Top developers, who have acquired properties at inception stage.