'Mumbai Is Getting Lower Parel-ised': Real Estate Expert Vishal Bhargava Concerned Over Likely Market Paralysis Amid Surging Construction Activity
"Mumbai home prices to fall as it gets Lower Parel-ised. Question is will it force many to get paralysed?" this is how Real Estate tracker Vishal Bhargava captioned his video on the social media platform X, formerly Twitter, raising concern about the future of Mumbai's property market, predicting a significant drop in home prices.
In his X post, Bhargava shared a video explaining Mumbai and Lower Parel home prices and pointing out that the city's real estate landscape is mirroring the phenomenon witnessed in Lower Parel a decade ago.
In the video posted on May 2, Bhargava points out that "Home prices in Mumbai have to fall this year as well as next year for one simple reason. Mumbai is getting Lower Parel-ised."
According to Bhargava, during the period between 2010 and 2020, Lowel Parel saw a flurry of construction activity. Buildings of 40, 50, 60, 70 floors were being built, resulting in an oversupply of residential units. This later resulted to home price market fall in that area i.e the surplus led to decline in property prices as demand failed to match the excessive supply.
Now, according to him, the same thing is happening at the Mumbai level, with over 10,000 construction sites currently active in Mumbai. This surge in the construction has caused the supply up 7-fold, putting immense pressure on the market.
As a consequence of this, Bhargava points out that builders will very soon have to either start giving discounts or will start with payment schemes.
"If even that does not work, then builders will have to cut rates and cut it publicly. The Problem is in this entire process of the Mumbai market getting Lower parel-ised. There are many projects and builders who will get paralysed. " he added.
As a consequence of this, Bhargava points out that builders will very soon have to either start giving discounts or will start with payment schemes.
"If even that does not work, then builders will have to cut rates and cut it publicly. The Problem is in this entire process of the Mumbai market getting Lower parel-ised. There are many projects and builders who will get paralysed. " he added.
In the video, Bhargava advises homebuyers to exercise caution and remain vigilant in their property transactions. "A good deal is a good deal only if you get the home," he added.
Netizens reaction
To the video shared by Bhargava, many of the netizens responded to it raising their concerns.
An X user, Diyansh LLP, wrote, "Truth is, Indian Real Estate market is highly priced because it's a perfect way to make your black money white. I see many building where flats are bought and no occupancy for years. If sm1 buying from their hard earned money, they will at least put on rent and not leave empty."
Another user, wrote, "Same situation with west Hyderabad. Approx 60 to 75K flats are planned to be ready by 2026 - 28. Max out of them r at digging level now. Already lots of investors hav entered into OTP plans. It will end badly for some of them. RERA is just a rubber stamp body."
"Unless we have benchmark to compare, how can we conclude? Let's pick any big project in kandivali/borivali let's see the current rate and then compare later , every 6 months? Name one big project pls, which we can compare," added another X user.
Mumbai property registration
According to the property consultants Knight and Frank report, in April, Mumbai recorded a property registration of 11,504 units, adding over Rs1,043 crore to the state exchequer.
The registration of apartments in April under the 500 sq ft increased to 45 per cent and the larger apartments ranging 1,000 sq ft and above remained stable at 15 per cent during the period, as per the report.