Dream house may be three years away
Planning to buy a house? You might want to wait till 2010.
A national market report by Knight Frank India says about 82,000 new flats with an area of about 1,000 sq ft each will come up in the city and adjoining Thane, Navi Mumbai and Kalyan over the next three years.
That's about 82.3 million sq ft of Grade-A (construction quality) flats. Almost 80 per cent of the country's real-estate demand comes from the residential sector.
The Knight Frank report confirms that the 30 per cent to 80 per cent jump in property prices in Mumbai in the last year have pulled down demand and hit sales. Also, there has been little fresh construction in posh south Mumbai.
Yet, price correction has begun only in the northern belt of the country.
"There has been no slash in property prices in Mumbai yet, but price correction of 15 to 20 per cent has started in Noida and Gurgaon," said Knight Frank India head Pranay Vakil. "A rise in interest rates, excess supply and sliding demand forced the correction."
Prices could stabilise over the next two months, he said.
Bangalore, too, has seen a huge jump of 50 to 60 per cent in property prices. Unlike Mumbai, demand has been on the rise in the IT hub as a result of higher salaries, double-income families and the disintegration of joint families.
According to the United Nations, India's rate of urbanisation is higher than the global average.
Almost 40.7 per cent of the country's population will live in urban areas by 2030, which means there will be a huge demand for housing in suburban locations.
In Mumbai, for example, the western suburbs will receive maximum new housing stock — almost 37 per cent (29.56 million sq ft) of total estimated supply by 2010.
With the widening of LBS Road and the construction of more flyovers, the central suburban stretch between Sion and Thane will be a hotspot, with 23 per cent of residential stock in this region.
Though 10 per cent of the housing stock is expected to enter the island city, it will be primarily in central Mumbai locations like Lower Parel and Prabhadevi.