Real-estate prices in south Mumbai are likely to decline but it is very difficult to tell by how much, as it really depends on the speed of new supply that comes into the market, according to Gautam Singhania, managing director of Raymond Group.
"While a lot of people are still very bullish that south Mumbai will become Rs 1.5–2 lakh square feet, I am a little sceptical about it," he told NDTV Profit's Executive Editor Sajeet Manghat.
Singhania emphasised that predicting the extent of any potential price decline was challenging. "Some believe prices will rise, but business decisions must be made based on your own perspective."
Gautam Singhania, Managing Director of Raymond Group (Source: Raymond Realty website)
Redevelopment is a key factor in this scenario, with each project adding a significant floor space index that builders can sell to finance the redevelopment of existing tenants. However, the extent of supply is uncertain, according to Singhania. "My view hinges on two factors — supply and infrastructure."
Gautam SinghaniaIf new infrastructure allows for faster travel between north and south Mumbai, people might opt for more affordable areas and enter the south market only when necessary.
He highlighted the transformative impact of the Coastal Road project, calling it a "game changer" that, alongside other new infrastructure, would reshape the city's future.
Real estate consultant Anarock’s data shows that housing prices in the Mumbai Metropolitan Region rose nearly 50% in the last five years, driven by higher demand. The average housing prices in the MMR grew 48% to Rs 15,650 per square feet during the January–June period in 2024 from Rs 10,610 per square feet in 2019.
Real Estate Market In NCR, Mumbai To Remain Sluggish: Sameer Baisiwala. Read more on Business News by NDTV Profit.