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Mumbai homes sales down 30% in Oct-Dec, at 3-year low
MUMBAI: Homes sales in Mumbai slipped over 30% in the quarter ended December from a year ago, making it the lowest in three years, says Liases Foras Real Estate Rating & Research.
In this period, home prices have gone up 25% and interest rates too have headed north.
“High prices are keeping buyers away in Mumbai. Weighted average prices have shot up 30% from the previous peak of Rs 8,100 per sq ft in June 2008, while it has moved up 97% from the bottom of Rs 5,353 a sq ft in June 2009,” said Pankaj Kapoor, managing director of Liases Foras.
The market saw sale of only eight million sq ft during the quarter, which was the lowest in the last three years. The unsold housing stock in Mumbai too has risen to 112 million sq ft, which is equivalent to 44 months of inventory as against 8 months that any healthy market can sustain. On a quarterly basis too, prices have gone up 5% with sales falling as much as 17%.
“Not only consumers, even the investor participation in Mumbai’s real estate market is reducing,” Kapoor said.
While sales in Mumbai continue to be a concern, other major markets are seeing healthy home sales, mostly because of new launches in the affordable segment.
During the quarter, sales in the national capital region (which includes Delhi), Pune, Hyderabad and Chennai rose between 6-49% from a year ago. Bangalore saw the highest growth in sales at 106%.
According to Liases Foras, unsold stock across these six major property markets has risen to 525 million sq ft, equaling an inventory of 23 months. Price trend across these markets also showed an uptrend with rates in the NCR rising 25%, while in Hyderabad, Chennai and Bangalore, prices went up moderately, between 1-6% compared to a year ago.
Source: http://economictimes.indiatimes.com/markets/real-estate/news-/mumbai-homes-sales-down-30-in-oct-dec-at-3-year-low/articleshow/11652210.cms
News Published Under: Mumbai | 1 Comment »
The weighted prices average prices has gone up in Mumbai mainly b’se of two reasons.
Spiraling prices of sand due to royalty problems.A year back it was around 3k+ and twice it touched 10k+.Which has now settled at around 5k. Was it cooked up things to fill pockets of ministers & beaurocrate or was a genuine reason ?God only knows. Other raw materials like cement, steel, copper cable & wires, brass fittings & alluminium also played big role in escalating in put cost.
Second most vital role played by Municipal Commissioner by rejecting plans having potential misuse elevation features. He even dared to bring in law to regularise such misuse potential by charging ” HEAVIEST PRIMIUM” not known in Municipal history i.e.60% of ready reckoner’s land rates, which is quite absurd looking at 33% of plot’s potential F.S.I. granted by same authority at mere 25% of land rate.These fungible FSI is going to add on fuel to spiraling weighted average price in future.Moreover he has put 10% charges/premium free balconies under fungible category.Why can’t he pay visit to another city of Maharashtra i.e. Pune or may even visit Delhi/Banglore/Kolkata/Chennai and make life easy for Mumbaikar by striking down his draconian rule by book.