Raymond Group MD Gautam Singhania offered a cautious outlook on real estate prices in South Mumbai, suggesting they may decline, though predicting the extent of the drop is challenging.
Singhania, in an interview to NDTV profit, expressed skepticism about the bullish predictions that prices in the area could reach ₹1.5–2 lakh per square foot.
He said business decisions should be made based on individual perspectives rather than market hype.
Singhania pointed out that the potential decline in prices largely depends on the speed and volume of new supply entering the market.
Redevelopment projects, a key factor in this scenario, add significant floor space index (FSI) that developers can sell to finance the redevelopment of existing tenants.
However, the extent of this supply remains uncertain. “My view hinges on two factors — supply and infrastructure,” Singhania told the channel, highlighting the complexity of forecasting price movements in such a dynamic market.
Infrastructure developments, particularly the Coastal Road project, could significantly impact the real estate landscape in South Mumbai.
Singhania called Coastal Road as a “game changer,” predicting that it, along with other new infrastructure, will reshape the city’s future. If these developments improve connectivity between north and south Mumbai, potential buyers might opt for more affordable areas, only entering the South Mumbai market when necessary.
The Mumbai municipal region has seen a consistent rise in property registrations, reflecting strong demand. Knight Frank India reported that property registrations in Mumbai city reached 11,631 units by the end of August, with the number expected to slightly increase to around 11,650 units.
This marks a 7% annual increase from August 2023, when 10,902 properties were registered. The state government is projected to earn over ₹1,050 crore from these registrations, covering both primary and secondary market transactions.
Knight Frank India’s Chairman & Managing Director, Shishir Baijal, noted that Mumbai’s residential market has maintained strong momentum in 2024, with consistent year-on-year growth in monthly sales.
He attributed this to sustained buyer confidence, a strong economic outlook, and stable interest rates, which have kept homebuyer sentiments positive.