InvestorQ : Why the Real Estate of Mumbai prices are stable for a long time?
Siya Saran made post

Why the Real Estate of Mumbai prices are stable for a long time?

seema Upadhyaya answered.
2 years ago
The real estate market in Mumbai has a good run but now it is at its worst conditions. The biggest reason for the stability of prices in the market is that the new supply cannot be absorbed as the demand is very less in the city.

The slums in Mumbai are the biggest reason for this heavy decrease in demand. The Slum Rehabilitation Authority (SRA) has come up with a plan under which the slum dwellers are given free flats in some areas of the whole project and the rest houses shall be available for marketing. Now, this has created a serious situation for the home buyers, those who barely could afford houses and were saving for so long for their dream houses, they now have to bear the cost of free houses given to the slum dwellers. This, in turn, is making housing projects expensive for the homebuyers and free for slum dwellers.

This has also affected the demand for houses outside the city limits as those people who were earlier traveling from far places have now settled in the slums in a hope that they would be developed and those people could get free houses.

As you can figure out, these decisions have negatively impacted the entire real estate market in Mumbai, and there is very little new demand for houses and very less supply to fulfill that demand. The development of slum is not bad, however, it is only on papers yet. This stability in the market could only be changed when the demand for houses on the outskirts of the city and within the city will increase.