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Commentary

Random prediction: Mumbai Real Estate will fall 50%

So all the realty folks are saying that of all places, Mumbai will see the least impact on real estate prices. Meaning, even if prices drop, Mumbai won’t drop by much, or won’t drop at all.

Not surprisingly, these statements are made by those whose income is related to how well the realty market behaves, and more importantly, on prices staying up and people greedily lapping up overpriced properties.

So I’ve decided to be the random predictor of the day, and say that in my not-so-humble opinion, real estate prices in Mumbai will drop 50% from the rates today by 2011.

I know I am likely to be both right and wrong, because we will see some sales at fire-sale prices, but when you look around, you will be quoted a price that seems to be from outer space. (which is pretty expensive, by the way) But I’m just ticked off that anyone can suggest that just because this is Mumbai it cannot see land prices decline. I think price declines will be the biggest in Mumbai of all the metros, including Bangalore. It will take time though, for the panic to set in.

I love three year predictions, don’t you?

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