Hopes of recovery for Mumbai’s property investment market are stalling thanks to the world financial crisis, experts have said.
The Times of India reports rents in the Indian city are down by about 10 per cent across the board, according to some consultants.
Developers are also facing the prospect of slashing their asking prices for new homes for sale as the local market continues to falter.
Mumbai has a bigger supply of high-end apartments and other homes compared to many other Indian cities, prompting fears it may have an oversupply of luxury residences.
Mumbai landlord Rakesh Trivedi, quoted by the paper, said tenants have started “forcing” owners to reduce rent amounts.
Few developers have launched official price cut schemes but many have begun negotiating with some buyers over smaller prices, according to reports.
However, Mumbai has already seen sales of commercial property as developers look to wash their hands of them completely rather than rent them.
In September Pranay Vakil, chairman of Knight Frank India, said:
“In cities such as Mumbai a 10 to 15 per cent correction has already happened. It may rise to 25 per cent per cent by the end of the year.”