Residential housing prices in Mumbai are expected to move further upside as sales increase and investor sentiments strengthen, a recent real estate report by Jones Lang LaSalle Meghraj (JLLM) said. “Demand for commercial spaces is improving and will continue to do so until the end of 2010. This will translate in to a large number of transactions, both in terms of leases and outright purchases,” the report said.
According to the report there is supply coming in on all segments of residential, from luxury to mass housing. The commercial and retail segments are also yielding enough supply to keep the market going over the next year. In addition, there will be lots of activity on the residential property front, owing to the strong demand and the fact that many developers are going for public funding, the report said.
“Residential is currently in vogue, so this is the area of focus for developers who seek to create brand in order to get on the funding bandwagon,” Managing Director (West India), JLLM, Pawan Swamy said. All these factors, coupled with growing urbanisation, are also fuelling the demand for property constantly.Moreover, with limited space available in the central city, Mumbai’s real estate market boundaries are constantly extending into newer area, Swamy said. Besides, infrastructure projects such as the metro, monorail and flyovers being put in place to boost accessibility more locations within the city and reduce commuting time. “This is good news for the realty sector in the medium to long-term, depending on the pace at which these measures are implemented,” Swami said adding that residential real estate will continue to be in highest demand, and therefore on the priority list of most developers.
Source:Indian Realty News