Mumbai Home Prices Rise Amidst Slowing Sales
While home sales experience a downturn and the real estate market demonstrates sluggishness, home prices in Mumbai appear unaffected by these trends. A recent report from Liases Foras indicates that home prices in Mumbai reached a record high during the last quarter, seemingly oblivious to the weak sales figures.
Rising home prices pull down property sales.
The residential market in Mumbai stands out as one of the most expensive in India, where property prices significantly exceed those in other cities. Despite already reaching elevated levels, prices continue to climb.
According to the Liases Foras report, Mumbai witnessed a price hike of 2.9% during the January-March quarter, resulting in an average rate of Rs. 11,626 per square foot, as reported by this property research firm. During the same period, Liases Foras reports that sales growth remained at a mere one percent.
Liases Foras founder, Pankaj Kapoor, noted that prices have increased across numerous major cities, exceeding initial expectations.
Home prices are going up, resulting fewer sales.
Despite expectations of a price correction following a price decrease in the last quarter of the previous year, Mumbai experienced an unexpected price surge. In the preceding quarter, Mumbai saw a marginal price fall of only 1%.
The Reserve Bank of India (RBI) adjusted funding costs in March, marking the second rate cut this year.
Furthermore, the percentage of unsold homes increased, reaching 139.3 square feet after a 3.7% rise. Similarly, unsold homes in Delhi and other NCR regions reached 262.6 square feet, reflecting a 0.1% increase.
Liases Foras tracked six cities, with half experiencing a decline in home sales. Hyderabad recorded the largest decline in home sales, followed by Bangalore.