Residential property prices in Mumbai have increased steadily after the correction seen post the Lehman debacle. In the period from the second quarter of 2009 to the same quarter in 2013, residential real estate prices in Mumbai have increased by 66%.
There is a steady and inflexible demand for studio apartments, both in the metros and tier 2 cities. These apartments are usually the first to be sold out in a residential project that features them.
In Mumbai, the iconic Express Tower is a good example of a real estate asset in a prime location of India’s financial capital that is ideally suited for advantageous repositioning.
Given the typical time-lag between an upturn in economic fortunes and leasing market activity, a full-fledged recovery in the leasing volumes of Mumbai’s office property market in early 2013 seems unlikely. Heading into 2013, doubts over future economic conditions may continue to dampen corporate demand.
Over the last six months, the housing market in Mumbai had started showing signs of revival after an 18-month period of sluggishness beginning in the 4th quarter of 2010. The hiked Ready Reckoner rates could dampen that revival.