Home prices in Mumbai rose in the last quarter. Meanwhile the period was noted for lower home sales as well.
MUMBAI: Home sales are down. The real estate market is sluggish. Yet the home prices are not affected by them. It seems that the home prices are not aware of the weak home sales.
According to a recent report of Liases Foras, home prices in Mumbai have reached a record height in the last quarter.
Residential market in Mumbai is probably the most expensive in India. The property prices are far higher in the city than in any other cities. It has already reached the sky and still it is going up.
As per the Liases Foras report, Mumbai saw the price hike by 2.9% in the last Jan-March quarter. Now the average rate is Rs.11626 per sq. foot, reports the property research firm.
Liases Foras reports that during the same period the growth of sales was just one percent.
Liases Foras founder Pankaj Kapoor said that the prices have gone up across many of the top cities. He added that the prices shot up against the expectation.
As the prices fell in the last quarter of last year, a price correction was expected in Mumbai. However this did not happen. On the other side, it went up. In the last quarter Mumbai had seen a price fall by a mere 1%.
The Reserve Bank of India also changed the funding costs in March. This is the second time in this year, RBI cuts the rate.
The percentage of unsold homes also rose. The unsold property reached 139.3 sq. ft. after facing a 3.7% rise. In the same period, the unsold homes in Delhi and other NCR regions reached 262.6 sq. ft. after swelling by 0.1 per cent.