Destination development and infrastructure development are joined at the hip in Mumbai. To make a destination project viable, it has to provide accessibility, open spaces and social conveniences such as shopping facilities, schools and hospitals.
After a one-year period starting 3Q 2009, which saw a strong recovery with a record 40%+ increase in prices, the Mumbai residential real estate market has been seeing a slowdown over the last two quarters across various micro markets.
After surpassing the peak valuations of 2008 by 20% in 2010, Mumbai’s residential property rates today are back on par with the 2008 benchmarks. This could be considered a correction, and it has come about as a result of an increasingly urgent need for capital by the city’s developers. It is fairly certain that this correction phase will continue for the next 3 months and inevitably extend into the traditionally slower monsoon / vacation period.
The concept of international, standardized luxury floor space must evolve further before India can absorb the demand. Developers must come up with more imaginative ideas of differentiating their luxury malls from the run-of-the-mill. The idea is not to attract mass traffic, but to offer an atmosphere of exclusiveness. In other words, luxury mall developers must learn to eliminate the commonplace components and introduce high-end features in their place.