Mumbai braces for real estate market hit

December 15, 2008 by OPPE News

Mumbai is now bracing itself for serious price falls in the local real estate market, commentators have said, with drops of up to 25 per cent a possibility.

Indian Realty News said property prices fell by five to ten per cent following the militant attacks on hotels and tourist attractions last month.

Before the November 27 to 29 terrorist operation, which left more than 150 people dead, Mumbai had been expected to see a mini real estate market revival.

But the incident has since left a question mark over how Mumbai, seen as India’s business hub, will cope economically.

Indian Realty News said market analysts have since noted prices could “fall by another 25 per cent over the next six months”.

It added a November 24 report by Goldman Sachs in India showed many of the country’s major cities were suffering from an ‘oversupply’ of residential property.

Mumbai property exhibition Cityscape India 2008 was cancelled by the organisers after the attacks, but last week it was revealed the show would now take place in the city in December 2009.

The Financial Express also reported some of India’s biggest property developers were also re-visiting insurance policies after the attacks, with the paper saying only a handful of building firms have cover against terrorism.