Property prices in Mumbai to fall by upto 15%

Leading real estate sector players attribute the impending fall to rise in interest rates, escalation of cost, credit squeeze by banks, bearish capital market and weak sentiments globally leading to poor offtake of properties.        

"These will definitely have a negative impact on the property prices in Mumbai and other cities in the country. In my view, the price will go down by 10-15 per cent over the next six to nine months," Indiareit Fund Advisors' Managing Director and Chief Executive officer Ramesh Jogani said.        

On the positive side, it shows that markets are maturing and the fall in price will again bring resurgence in customer demand, he added.        

Indiareit Fund Advisors manages a total of $450 million domestic and offshore funds.        

His views were echoed by leading real estate firm Orbit Corporation's Managing Director Pujit Agarwal as he said that there is a total slowdown in the property market at the moment.        

"For the last six months sales were lacklusture. The demand for property will not go up until general election scheduled for next year," Agarwal said.        

High inflation, increase in cost of capital and widening trade deficit have led to the fall in the stock market, he said adding that real estate market of Mumbai has a significant co-relation with the stock market.