Real estate prices likely to remain stable in Mumbai

Real estate prices in the metropolis, one of the most expensive realty markets in the country, are expected to remain stable in the near future, a top industry official said today.

"The real estate prices may remain stable as the new supply is not going to come in the market and construction costs have gone up substantially," Maharashtra Chamber of Housing Industry (MCHI) President Sunil Mantri told reporters on the sidelines of a property exhibition here.

The cost of construction has shot up by 30% in the last one year alone. Hikes in bank interest rates have also slowed down the property buying process, he said.

The project approval process has slowed down drastically therefore the new supply is unlikely to come in the market, Mantri said.

Meanwhile, the Maharashtra Government is expected to come out with standard guidelines for floor space index (FSI) in the city in the next one month, Brihanmumbai Municipal Corporation Municipal Commissioner Subodh Kumar said.

FSI is the ratio of plot area to built up area.

In order to reach out potential home buyers, MCHI today inaugurated the 'Property 2011-April Edition' in Mumbai. The exhibition will showcase 15,000-plus properties.