I strongly feel it will.
There are so many flats (in thousands)
which are lying empty in Mumbai suburbs.
Low occupancy causes troubles like poor maintenance of ready buildings.
Builders say that they are fully sold out but we are talking about the end users here and not only investors.
Investors will not bring occupancy to the building thereby causing poor maintenance.
Also a 2 BHK apartment in Goregaon - Borivali now costs more than 1.25 Cr which is far away from a common man`s reach.
You can see building in these area in which possessions were given for more than 1-2 years and still the occupancy is as low as 40% or in some cases even lower.
Also taking a housing loan to move into your new home has become very expensive and in order to be able to get such loan you should be earning in lakhs/month.
Property rates should come down so that the common man can afford it.
The sales in these areas for apartments have fallen drastically as I have heard from many Estate Agents and even they have started to fell the heat now.
Buyers are willing to come forward provided rates come in their reach without the burden of 70-80% loan on them.
Lets take an example of 1200 sq ft.
2 BHK flat in these areas.
If you go to buy such a property in building by reputed builders,
the rates start from 10K/sq ft
Stamp Duty and registration charges which end up to more than 1.3 Cr.
How will a common man afford it?
And if they say that these flats are not for a common man then who are they building numerous townships for?
If they expect all foreigners and NRI and Industrialist to come and buy,
they would still be able to sell merely 20% of the lot.
So think again…..
Let the prices come down.
Let the sales come back to boom.
Earn reasonably and build a happy township!