Mumbai realty market: What next?

The salaries of only a certain portion of the public is rising. Whereas most of the persons who are very much Mumbaikars and work in Mumbai are common man who are the most hit with their salary not rising in proportion to rising prices. How will they be able to afford a home which maybe an investment for some but a necessity for others.They not only will not get sufficient loan against their salary but there will be insuffcient margin money and also the tension of repaying the principal amount and interest which may also rise within a time span. Something should be done to stop this illogical rise in prices of residential houses.

the claim by reality developer is not only tall but false.. the funds supply by FII and FDI has now gone to stock market, whatever, black money was there with politicial, builder, undeworld or FBNO operators, is stuck, they are now demanding back money from them..
i am in close touch with them.. they are not trying to push the sale, but sitting duck with their own price of 2009, dont want to come down to level of 2008. i see no reason for that, and it will nose dive to 2007 level initially in new construction and to 2006 level for old buildings, so those who did not sell will repent, buyers are still not available for new or old buildings as actual users have no funds,at the price, offered, they dont have income to borrow ten time their income capacity, repayment period and no prudent banker will lend .. i am also a banker and market analyst for 30 years in the field..

i am long time market player in stock and property and i have seen at least three to four picks and trough.. every bubble has its life, may be 3-5 years.. this has happened with me all the time.. burnt the fingers and hands to too.. sold at low and waited till high of highest reached, now no more rise but fall will follow in crisis manner, there will be distress sell by new property owners, as they have invested to make money and hardly find buyers, so also those who owned old houses and wanted to shift to newer one, by selling old at higher price, will be stuck there itself.. only cash rich like me will make fast buck to buy or invest.. or to own one.. you have to be smart investor, after 30 yers of experience in the field

Real estate market is riding on the back of stock market boom and developers, politicians cartel. All the politicians, even the smallest of corporators in city have become builder or indirectly related with some developer. we may not see W- shaped correction and recovery but we will witness higher bottom, leading to 25% to 40 % correction. There is short supply from old flats as everybody is having a hope that redevelopment will happen and they can get good benefit.

Property prices in Mumbai city and suburbs are pushing up 1st time buyers affordability beyond their financial capacity. The rise in price may be good news for current owners but against future generation.Housing is a necessity but has been converted in a commodity by the rich.such high prices effect overall prices all over the country.People cry hoarse for any price rise of essentials and it is high time we treat property as essential necessity.