Categorized | International

Residential Real Estate Values Expected to Drop in Mumbai

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Many experts believe that the housing market in Mumbai will soon see a decline in values. The residential real estate market has experienced an incredible boom over the past few years, bringing housing prices to unaffordable levels for the general public.

Due to its current unaffordable state, many real estate analysts and experts believe that prices could drop as much as thirty percent. Although there is no indication as to how decreasing home values could affect the overall economy in Mumbai, many analysts believe that such a price drop is necessary.

There has recently been a significant growth in the number of slums in the city, and unless prices come down to affordable levels, such growth will continue.

Some analysts are not so confident that Mumbai will see deflated values in their residential housing market. They cite that there has been talk of bringing home values back to affordable levels for quite some time, and nothing has ever come out of the talks.

The majority of experts, however, are adamant that the price drops will come, though they believe that the overall decline in values will be very gradual. According to these experts, the prices have not yet fallen because there are still investors with enough money to invest in property in Mumbai. Once that money disappears, values will have to drop to more affordable and sustainable levels.

Mumbai is considered to be the prime city in the region to see a decline in residential real estate values, as other major cities are still seeing significant growth, and have not yet reached the astronomical pricing that is currently present in Mumbai.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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