Mumbai is a megacity; more so because of its epic proportions! The city has grown in leaps and bounds in the last few decades. The economic boom of the city in the more recent decades has sent the property prices soaring out of control.
Being the home to Bollywood and some of the richest businessmen in the country, Mumbai has always had a premium over the other metropolitan cities of Indian when it comes to real estate. But the prices are spirally out of control and are out of reach for most of the working population which contributes to the majority in the city.
Being the economic capital of the country, the home to the Stock Exchange, lots of textile mills, the capital of the west coast trading front and a number of industries, Mumbai has grown to be the largest city of the nation. Even with all the square miles of space, Mumbai properties are costly and beyond reach for the common man to invest in.
Mumbai was initially severely constricted for its expansion by the geography. However, the original island of Mumbai surrounding the port was continually expanded after 1950 and now stretches well into the mainland with a number of suburbs springing up to support the main city. In the most recent census, it is concluded that only a third of the population now lives in the ‘island’ city while the rest reside in the suburbs and rely on the busiest intracity railway network of the country to ferry them back and forth from work.
The strain Mumbai’s population of 19 million puts on the land resources is enormous. Builders are constantly coming up with high rise apartments as the solution but the asking prices for these properties have been on the rise for a long time now. In 2011-12 there was a sudden spike in the prices which has led to a property bubble that is yet to be broken.
Prices in the city for an apartment cross the Crore marker which is clearly beyond the salaried individual. Even with the availability of lucrative finance options, properties worth in crores will have EMIs ranging in lakhs which is clearly a financial burden not many could afford! The affordability problem of Mumbai’s property market has pushed the count of unsold homes in Mumbai to 2,00,000 before the start of this year.
However, according to recent studies, the property bubble will burst even with a slight drop in the prices. Hundreds of prospective buyers are keenly watching the market for a price drop and at the first sign of a slash in the asking price, they are expected to jump in with their investments. This will encourage all the buyers to follow the same trend and dissolve the deficit. Expect the property in Mumbai to be back in action in the next 24 months!
Sulabha is an enthusiastic writer who has an eye on the property trends in the country. A born Mumbaikar, always eager for a chat on Mumbai Real Estate over Wada Pav and a hot cup of chai! Loves writing for IndiaProperty.com
Article Source: http://EzineArticles.com/9092881