Exorbitant property rates have kept Mumbaiites from buying apartments this festive season. The drop in demand has affected developers, with few new projects being launched during Diwali, usually considered an auspicious time for the property market.
“I can’t afford to buy a house at the existing rates and have had to put my plans on hold,” said Arvind Shenoy, a senior executive in a multinational firm.
Builders, however, feel that it is unfair to blame them alone. “For the past one year, all building permissions have been put on hold and even home loans are difficult to procure,” said Anand Gupta, secretary, Builders Association of India, one of the apex bodies of builders from the city.
Mitesh Gala, a coaching class owner from Dadar, is ready to look beyond Mumbai, but is still finding it difficult to find a place within his budget. “The rates are so high that I can’t find a house even in places like Navi Mumbai and Thane,” said Gala.
According to Jones Lang LaSalle India (JLLI), a realty consultancy firm, this Diwali is a testing time. “Developers will evaluate the pricing based on the sales generated during this festive season,” said Anuj Puri, chairman and country head, JLLI.