Mumbai + Bangalore Outlook for next 12 Months

Here is OUTLOOK of Mumbai and Bangalore Residential Property Markets for the next 12 months.

Mumbai - Island City 15,000 - 40,000+ [Rs/ SFT] Typically, the first market to recover as the economy turns around and oligopolistic pricing. Given the rise in the last 6-8 months, prices in general are back to 2007 peak and may consolidate now. We may see a near-term correction of 5-10% but prices are likely to end the year higher than last year.

Mumbai Suburbs 5,000 15,000 [Rs / SFT] Tend to lag the island city by 6-12 months. Barring exceptions (in areas which saw feverish speculative activity), prices are unlikely to fall from here and may inch up through the year and end the year 5-15% higher than last year.

Bangalore - 2500 - 8,000 [ Rs / SFT] Even as it loses out to emerging competition from other cities, Bangalore remains the most important IT hub. Prices are likely to remain weak, if not stable and start inching up by 2H10.