Real Estate is a vast and complicated paradigm. And this gets even more intricate when we come to a country with a grand population of over 1.4 billion or 140 crore people. The business is multiple layers and tranches, as the nature of Urban and Rural real estate is markedly different.
However, demand is a crucial component, a factor, like some others, that is essential and is a common currency, no matter what segment of the sector it is.
With larger global turmoil and more volatility in store, thanks to the unstable equity markets, is the Real Estate market in Mumbai and other cities cooling down?
Is The Real Estate Market Cooling?
Mumbai-based ace realtor Ravi Kewalramani, who is known for unquie style and astute understanding of the realty landscape, shared his thoughts on the same.
First, he cited luxury homes and said that buyers are taking longer to close deals. The closing time has gone up from 30 days to a massive 90+ days.
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In a post on social media platform X, he shared on thread on the possibilities. The thread started with the title, ‘Early 2025 Real Estate Subtle & Unsubtle Signs: Ground Up.’
Kewalramani then jumped into the signs of this apparent slowdown.
First, he cited Luxury homes and said that buyers are taking longer to close deals. The closing time has gone up from 30 days to a massive 90+ days.
The realtor attributed this to in financial markets. They’re cautious, waiting for the right deal, not just any deal.
Switching sub-segments, he then went on to ‘Affordable homes’. According to him, buyers are pulling back. Budgets are being reduced. Some have lost a lot in financial markets and completely postponed property decisions. Early signs of demand softening across segments.
Is the money going elsewhere?
Well, according to Kewalramani, it might be. He claimed thatMutual Fund and SIP advertisements have made a strong comeback. They had nearly disappeared in the past few years. “Is capital being rerouted away from real estate and back into financial markets?”, he speculated.
Calling it as another sign of ‘cooling momentum’, he added that Developers are adjusting. Under-construction projects now come with flexible payment plans. This, according to him, usually transpires when inquiry levels stagnate.
An Imminent Slowdown?
Looking at some of the larger patterns, he claimed that property registrations are declining year-on-year. The market sentiment is low. “Many believe we are entering the early stages of oversupply, a phase that typically signals the beginning of a stagnation cycle.”, he added.
Another factor that Kewalramani shed some light on was infrastructure spending from the government.
He added that infrastructure is surging.
He pointed towards major infra projects in Mumbai, from metros, bridges, railways, airports, commercial zones and data centers.
“While the market cools, city-building is accelerating. Is the government spending increasing as they see early signs of cooling in real estate?”, he once again speculated.
