Mumbai real estate rates are falling to 2005 level. Documents registered and deals offered in classifieds are real witness of this. Interaction with many builders in the city has revealed that sale has dropped to almost fifty percent as compared to December 2007 till March 2008. Though the rates for new projects have not come down, sale drop will lead to further fall of real estate rates in the city.

Many new projects have started to offer indirect discounts to the actual occupants. Companies and corporate too are waiting for further drop to accommodate their maharajas.

Brokers are busy in resale and investment sale. Each of them has hundreds of proposals with no buyers in the market. Due to economic conditions, seasonal depression and liquidity crunch besides home loan interest rate hike, the process of declining in real estate rates all over the country is most likely till December 2008.