Several people are looking to buy a flat in Mumbai but high prices are forcing people to stay away from the market. Mumbai real estate has seen a rapid price rise in the last few years some people blame government policies for it others say the demand and supply mismatch has caused huge price rise in Mumbai real estate. Earlier people used to buy flats in Navi Mumbai as the rates there were much more affordable. But now even the property rates of flats in Navi Mumbai are sky-rocketing. If one looks at price trends on property site in India one will notice that the prices of flat in Mumbai and flats in Navi Mumbai have seen a dramatic hike.
Mumbai is the financial capital of India and as a result a number of people visit the city looking for good job opportunities this has caused accommodation scarcity as there is shortage of land. The city of Mumbai is surrounded by water from three sides which leaves very less scope for expansion of the city. With the supply remaining put and the demand constantly increasing it hardly comes as a surprise that the flat in Mumbai saw such a huge price rise.
Property site in India point out that Mumbai real estate is one of the most expensive realty sectors of the country. This is the reason why most of the people living here do not even think of buying a flat in Mumbai. Even after the reduction in home loan rate there was hardly any rise in demand seen in Mumbai real estate because even after taking a loan buying a flat in Mumbai seems unreachable. People who wish to settle here either have to buy flats in Navi Mumbai or look towards Thane side.
Property site in India also point out that due to increase in demand of accommodation spaces the rentals have also significantly gone up in the last few years. Although the rentals have not gone up significantly in the satellite cities of Mumbai but Mumbai real estate saw huge rise in rentals especially for those areas which are located near metro station or the local train stations. Earlier people were waiting for a price correction to happen in Mumbai but now people have mostly realized that the real estate prices are unlikely to come down soon in the future as there is supply and demand mismatch.