Well, finally there could be some good news in store for potential investors in Real Estate. Seems the rapidly deteriorating macro economic picture has finally started to take a toll on what has been traditionally preceived as a safe investment avenue. Auctions for plots at the prestigious Bandra Kurla Complex held by the Mumbai Metropolitan Region Development Authority (MMRDA) have seen the reserve price falling. This development is really significant as the Bandra Kurla Complex has been positioned as the hub of commercial activity in Mumbai,having overtaken the traditional business district in South Mumbai, namely Nariman Point in terms of business importance.
This could augur the start of a much anticipated or from the view point of a potential investor a "much needed" correction in the Mumbai real estate market. The only word that can be used to describe existing rates is stratospheric, which has put housing out of the reach of most of the middle class. Buying interest which has been on the wane recently due to rising interest rates, is likely to further take a hit as more supplies hit the market over the next 9 - 12 months. A correction in Mumbai could very well herald a correction across the whole Indian market. One look at the way real estate stocks have performed over the past 3 months or so suggests the stock markets are pointing to a significant slowdown in earnings for these companies. Only time will tell how big the correction will be, the only thing potential investors can do until then is wait and watch, hoping their dream home becomes a little cheaper to acquire.
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