Mumbai witnesses decline in quoted prices

Mumbai witnesses decline in quoted prices

66
Knight Frank

 

Knight Frank India launched the eighth edition of its flagship half yearly report – India Real Estate. It presents a comprehensive analysis of the residential and office market performance of MMR for the period July–December 2017 (H2 2017).

Mumbai has witnessed a decline in quoted prices and weighted average prices were down 5% YoY in 2017, according to Knight Frank report. The residential sales in H2 2017 were 19% better than demonetisation-hit H2 2016.

The Homes launches in H2 2017 plummeted by 23% YoY and as developers’ focus shifted towards completing existing projects. From an annual perspective 2017 saw 32% fewer launches YoY and new projects and same was down by staggering 83% from peak in 2010, according to report.

Unsold inventory in 2017 came down by 25% YoY indicating a healthier QTS of 7.9 quarters.

Report further said that New office space supply hit double digits for the first time since 2012 and demand in peripheral markets pull office leasing by 6% in 2017.

Dr. Samantak Das, Chief Economist & National Director – Research said, “The Mumbai market has experienced a drop in residential prices. Unlike the conventional narrative developers cut down prices to offload their unsold inventory. The base price has come down by 5% which translates into an effective price benefit of 11-12% for buyers. This includes bouquet of incentives such as waivers on stamp duty, floor rise and assured rental schemes. In addition we have observed that the retail inflation has been growing higher than the city price which provides an additional benefit to buyers as far as house price is concerned.”