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Property prices in Mumbai likely to drop

Courtesy/By: Yash Kumar | 29 Apr 2018

A lethal cocktail of high prices, drying up of bank lending and government efforts to reduce black money may combine to produce what many have anticipated -- in vain -- for long: a crash in realty prices in the country's metropolitan cities.

The additional supply created by the new Development Plan for Mumbai,that allows development on salt pan land and non-development (ND) zone land will help to create 20 lakh houses in the city. This extra supply of houses is likely to have a positive impact on property prices in the metropolis. According to a senior government official, the new provisions have been made with the aim to increase the number of houses that can be constructed. “If there is more supply, then it will impact property prices by default. With the approval of the new development plan for Mumbai, that allows for development on salt pan land, no development zones, and the redevelopment of BDD chawl in Dharavi, it has created the possibility for an estimated 20 lakh houses. A large chunk of land will now be open to the construction of houses in Mumbai. We want to see the common man fulfilling his dream of owning a house,” said an official from the urban development department.

Courtesy/By: Yash Kumar | 29 Apr 2018