Property prices in mumbai suburbs have started cooling down and by March 2009 the fall would be anything between 10% to 20% from now, real estate consultancy firm Jones Lang LaSalle Meghraj said.

“There is no sign of propoerty prices coming down in the heart of Mumbai because of almost zero supply. But, beyond Borivali (a suburb) and in the neighbouring Thane district and Navi Mumbai, supply is well in excess of demand. Hence, prices in those areas is likely to come down by 10% to 20%”, said Anuj Puri, Chairman and Country Head, Jones Lang LaSalle Meghraj.

While in Borivali, prices are likely to come down by 10%, the drop would be in the range of 15% to 20% in Thane and Navi Mumbai by March.

There might be price correction beyond Thane as well, he said, adding it would take a long time for the real estate industry to recover from the current slump.

Puri said Punjab has been the worst hit due to the current macro economic environment of the country where property prices have already decreased by 15%.

“Tier-II cities like Indore, Nagpur and Raipur have also seen sales come down by 10% to 15%. If sales did not pick up during Diwali, there could be an additional 5% to 10% correction,” Puri said.