The nouveau-riche population in Mumbai seeks apartments with amenities like swimming pools, clubs, spas, gardens and recreation centres. This has culminated in a rising demand for luxury flats and rental spaces in the central suburbs. Suburban areas where increasing sales were recorded in the past few months are Wadala, Mulund, Chembur, Goregaon East, Powai, Vashi and Thane. In all these areas, the rates have varied from 2500/- to Rs.6000/-. Although, there are numerous constructions in the Thane area alone, places like Bandra, Worli, Andheri and South Mumbai have also witnessed activity in terms of re-sale and under construction properties. Navi Mumbai is also becoming popular among investors because of its well planned layout and infrastructure.

However, a recent report suggests that real estate prices in Mumbai may begin displaying a downward trend. The prices in Mumbai appear to be stable but the property registrations have dropped by 8%.

It seems that there is not only a slowdown in sales of luxury property, but also a reduction in flat prices. It appears that from Lower Parel to Santacruz, property rates have fallen by 15-20%. The western suburbs like Jogeshwari, Kandivali and Borivali have witnessed a fall of 20%.

Other industry insiders predict that this is a temporary situation and the real estate prices in Mumbai will return to their former glory. This is mainly due to the shortage in supply.

The realty market in Mumbai and the rest of India has been affected on account of global recession, increase in home loan rates and the stock market crisis. This has lead to a 15% to 20% correction in prices. However, this correction is estimated to be of a short-term rather than a long-term nature.

This correction in prices is predicted to affect small developers more as compared to large developers. Experts advise builders to be resilient, reduce their margins and continue selling if they hope to emerge as long-term players in the market.

It is expected that the demand will stabilize by the end of 2009 by an increasing number of residential buildings and by converting mill lands into commercial space

It seems as though everyone wants a piece of Singapore right now. The city state is undergoing a facelift, causing more people than ever to invest in its booming property market. With ambitious plans to transform its downtown area into a prime vacation spot and international financial centre, Singapore is bound to attract much global attention in the next few years.

New Developments

Scheduled to be completed in 2012, White Sands and Genting are developing luxurious resorts equipped with world class casinos and high-end retail in Marina Bay and Sentosa. These developments will almost certainly increase Singapore bays’ appeal. More importantly, property around the area will likely increase in value as the resorts draw in a large group of professional expatriates and glitterati. Demand and prices are expected to continue rising and we are confident the value will only peak when the resorts are launched.

Good location, modern design

Singaporean developers fuse trustworthy engineering with modern architecture, creating a series of eclectic living spaces in town. In fact, you could easily mistake them for a designer building in the heart of Tokyo or Hong Kong. Herein lays the catch. These boutique units are gradually becoming the norm in downtown residences in Singapore and cost only half the price of those in the city’s competitors. It is no surprise foreign talents are moving to the island nation.

Could it be a bubble?

When 2007 came to an end, the state newspaper, Straits Times reported on the record property prices reached in the past year. While it is true that several condominiums fetched eye-popping prices, these were exceptions to the general picture. Overall, the prices of downtown property are forecast to rise at a more sustainable pace of 10 to 20% this year. What investors can expect is steady returns over the long run.

Lower real interest rates

Home loan rates in Singapore typically range from 3 to 4%. Yet due to the record-high inflation of 3.6% in October 2007, pressure will be put on the already low interest rates. Real mortgage rates at the moment are only slightly above zero, at about 0.5 to 1.0%. What this means is a positive effect on borrowers. Instead of keeping money in the bank and losing out from the low bank rates, investing in property is a far more attractive proposition.

There is so much talk about Asia, yet many Asian countries suffer from a corrupt and shaky market. Singapore stands out in the eyes of property investors because the market is matured and stable. Singapore promises exciting developments tempered with careful governance and there is perhaps no better time to invest in the garden city.

Keith Lau is a professional real estate agent based in Singapore, and may be contacted at: Singapore Prime Districts