Price surge has affected property demand in Mumbai: Pujit Aggarwal, Orbit Corp
In an interaction with ET Now, Pujit Aggarwal, managing director & CEO, Orbit Corporation, discusses their upcoming projects & analyses the current trends in Mumbai's property scene.
Is indeed demand (for property) looking that robust at this point of time?
Pujit Aggarwal : Demand is very robust; there is no question about that. I am still sceptical about the prices at which deals are taking place. If we are talking about central Mumbai, we are seeing that there is a huge supply coming in over the next 3-4 years. Given the fact that there is such a large supply coming in, we are already seeing the prices more or less going a bit softer, which is the correct point that we are looking at.
So at one point of time we were seeing prices to the extent of Rs 32000-33000 in mid-Mumbai segment, central Mumbai, now we are seeing that the prices have corrected to about Rs 25000-26000, which is very good in these premium developments and as the supply keeps coming in, the prices may go softer. Having said that, the offtakes are also phenomenal, the demand is huge and people are just wanting to lap up the properties.
You have a couple of projects in Lower Parel, one in Sakinaka, Andheri as well, which would be central Mumbai and suburban Mumbai. Is demand in those projects also looking very nice?
Pujit Aggarwal : Last year the demand was phenomenal as we came out of the recession, but over the last 4-6 months, the demand has not been very good because of the surge in prices. All of a sudden the prices moved up by 30-40% and because of that the propensity to consume by the consumer really shrunk.
Therefore, what we are seeing now is that in the festive season, the offtake is beginning. We are seeing a trickle of purchases by actual users and over the next few months, I am confident if we keep the pricing market-friendly, we would see offtakes. I have seen a few other developers who have done some innovative market techniques and that's doing very well.
As published on The Economic Times website, Sept 23rd 2010.