Mumbai Real Estate Crashes 30% -- Finally!

Good news in this morning's newspapers. Both the DNA and the Times of India have reported a 30% crash in Mumbai's real estate market. The benchmark for this is the sale of commercial plots in the Bandra-Kurla Complex. Of course they won't say it like it is, but you do the math and you will understand why this is true.

Last year, in 2007, prices were at a staggering Rs 48,600 per sq. ft. paid by the Wadhwa Builders. The scenario changed yesterday; an empty auction hall wore a deserted look, with Jet Airways picking a plot for Rs 32,000 per sq. ft. Jet proposes to build its global headquarters in the area.

The drop of 30% went largely unreported, because the focus was on signals of the slump rather than the quantum. (Editors note!) This "30% drop" would have made one screaming headline.

Read the Times of India story here

Read the DNA story here (with a rather inappropriate title)