Mumbai, Pune real estate markets crashing? We find out!

There is a slowdown, but Mumbai and Pune real estate are far away from a crash! 

These days, the real estate world, especially in India could do with some good news. There are no two ways about that. The internet was so flooded with real estate forecasts by analysts that we had to do a little reality searching ourselves. We needed to know the truth plus we wanted some frayed nerves to be calmed. To achieve these two objectives, we called up Mr. Dipesh Gandhi of The Phoenix Mills, Mumbai to find out what he had to say about the real estate situation now and for the next six months.

Why Dipesh?

You see, many analysts out there are like the dudes working at the weather forecast office. When they say it is going to be sunshine like Miami all day, make sure you step out wearing that raincoat. We have seen Dipesh in action on various occasions and we trust his assessment far more than some of the analysts. Enough said, now back to that topic.

Mumbai, Pune real estate NOT heading towards a crash!

We got Dipesh on the line and asked him a few crisp questions. As expected, some crisp replies followed.

# IREFD: What is the Mumbai, Pune real estate scene currently?
# Dipesh: There is a slowdown, yes. Cash flow is an issue right now for real estate builders. The overall sentiments in Mumbai and Pune are not too great, thanks to the liquidity crunch. High Home Loan Interest rates are preventing customers from buying property. On the other side, high interest rates on debts are also turning up the heat on real estate builders. You could call the situation tight. But there is no need to hit that panic button. It is a situation that shall pass, albeit with time.

# IREFD: How much time, you reckon?
# Dipesh: In about a year from now, things should be chugging happily along the track, I say.

# IREFD: With demand slackening for various reasons, do you think property prices would soften/ lessen/ break?
# Dipesh: I do not see any clear or documented evidence of prices softening in the Mumbai or Pune real estate markets. And chances of a major price correction is almost zero. The prices will hold steady at current levels in the macro perspective.

# IREFD: So, you don't think there is a real estate market crash approaching?
# Dipesh: I am well versed with the Mumbai and Pune markets only and I am sure that we are not headed towards a crash anytime in the near future. [People, breathe easy now, thank you!]

# IREFD: Will we see new project launches then in Mumbai- Pune in the coming times?
# Dipesh: Yes, project launches shall continue and some great deals could be out there right now. I cannot comment on 'on time' deliveries for all the projects being announced lately but on the whole, construction shall continue and real estate will be built as per specs.

# IREFD: Advice for our readers?
# Dipesh: NRIs have a great reason to invest in that property in India now as they are getting a lot of bang for the buck these days. [Well, the truth is the truth with the dollar et al] There are some good property deals to be clinched out there especially at a unit level where some investors want to liquidate their small real estate holdings, so keep an eye out for those. Also, avoid rubbing your eyes too much as conjunctivitis is spreading like a wild fire these days. Those tips should turn your readers into 'better informed' individuals.

We will leave it at that. Something that straight and simple does not really need 3 paragraphs of analysis.
Cheers!

Dipesh is one of the coolest real estate professionals you will come across. He loves travelling, adores the Manhattan Skyline and rides his cruiser around town in Mumbai on weekends. We thank him immensely for his time.

About the author

Rahul Mishra is a real estate professional who started his life as a salesman, selling homes in the city of Kolkata since 2001. He worked pan India in real estate organisations like MMG Realty, Bengal Shrachi, The Phoenix Mills and The Space Group before helping co found Pillars with a single objective - To make real estate easy!

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