Mr. Dutt opines residential prices in Mumbai city will not correct in medium term. He argues the following as key reasons why? 1) Mumbai has little unsold near-ready stock with developers; 2) most investors hold long-only mindset and have holding capacity; 3) pent-up demand far exceeds fresh supply. The recent surge in rental prices indicates weakness in sale market which could cause softening in prices as more supply gets released. Developers have shown some price flexibility limited to new launches only. Price correction has been hijacked by HNIs and inflation.
Mr. Dutt shared his bearish view on NCR markets with a medium-term time horizon. He believes the NCR markets have been fueled by speculative investor activity & worries about its sustenance starting FY15 when majority of projects launched in period 2009-10 reach completion. He expects non-IT office demand to increase in Gurgaon (previously catered to IT/ITeS sector alone)
