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Mumbai’s Sky-High Property Prices Set to Fall, Say Experts

CNBC
A local resident walks past the Adarsh Housing Society apartments in Mumbai.

A local resident walks past the Adarsh Housing Society apartments in Mumbai.


Property prices in India’s financial capital Mumbai have surged 40 percent in less than two years, even surpassing peaks reached in 2008. Homes in Mumbai's prime locations, for example, can cost up to $2,000 a square feet.



But warning signs have emerged to suggest that a correction might be around the corner. Real estate firm Jones Lang LaSalle told CNBC that prices could fall 10-15 percent by the year-end.

According to industry experts, home registrations are down 30-35 percent in Mumbai compared with the previous year, which shows that investors and homebuyers have moved to the sidelines.

“Rapid rise in property rates in Mumbai have acted as a dampener for residential demand in the city, primarily in the premium and mid-high income segment,” Jones Lang La Salle said in a report.

The recent slowdown in activity in the residential space is hurting both property developers and home sellers.


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