Property sales down by 25%-30% in five cities
Pallabika Ganguly 28 April 2010

The fourth quarter of the last fiscal has reported a dramatic downfall in real-estate sales across six cities. But, driven by speculation, Mumbai property rates are still booming

The realty industry in six cities—Mumbai Metropolitan Region, Pune, Hyderabad, National Capital Region, Bengaluru and Chennai has reported around 25%-35% decline in sales in the fourth quarter of the last fiscal which ended in March 2010 compared to the previous quarter which ended in December 2009.

In Mumbai, the scenario was the worst, as real-estate sales were almost nil during the fourth quarter of the previous fiscal. “Sales are down by 35% compared to the last quarter in Mumbai. There is a downfall in sales in almost all the six cities in the fourth quarter (of the last fiscal). This shows that inventories are again rising in all these places,” said Pankaj Kapoor, founder, Liases Foras.

The prices of properties in the western suburbs of Mumbai have dramatically increased in the last quarter. There is no logic behind this increase in price—only speculation seems to be driving the rise. Rates have gone up by 25%-30%, keeping buyers away from the market.

Earlier, properties away from south Mumbai used to quote at a lesser price. But now, a property at Andheri and Kandivali, both Mumbai suburbs and separated by a distance of almost 13 km (Andheri is closer to south Mumbai) are quoting almost the same property prices. A two-bedroom hall kitchen (BHK) of 1,080 sq ft in Thakur Village, Kandivali (East) is priced at Rs135,00,000 while a two-BHK of 1,097 sq ft is tagged at Rs140,00,000 at Andheri (East).

In the third quarter (Q3 FY10) property prices in Kandivali ranged between Rs7,000 per sq ft-Rs9,000 per sq ft but now the current price in this area is Rs12,000 per sq ft. Same is the scenario at Andheri, property which was tagged at Rs10,000 per sq ft in the last quarter is now available for Rs12,000 per sq ft-Rs14,000 per sq ft.

1 decade ago
ITs because of black money in real people will forget IPL scam and politician as always will enjoy.. no anti money laundering law in real estate.. farmers are doing suicide.. 100 million people going below poverty line but govt doing nothing. All real estate companies should be raided by IT
1 decade ago
Hey all this journalist talk is fine - last ten yts they have been saying that prices in Mumbai will crash -bt they never have - i dont consider 10% as carsh
Replied to arun comment 1 decade ago
my dear friend if it rise because of price rise justify you statement by the fact of price level of April 2009 level and now, would you justify this if "average price of residential property in the Mumbai works out to Rs 7,747 per sq ft" is avg income of mumabaikar allows to afford this... so one way or other way this is formation of bubble.. One or another it will burst. Unfortunatly only ppl will suffer who bought at last leg. so think ur risk appetite before buying a home. its black which no need to measure risk all cheated from ppl pockets... and thanks to congress govt. which just followed every steps of United States
Rambabu Shastri
1 decade ago
In Delhi, buffaloes roam the middle of the streets... as they are abandoned by their owners. In Mumbai, it is people, as the footpaths are taken over by hawkers and encroachments.
Rambabu Shastri
1 decade ago
Oh... by the way, why put so much construction into Mumbai. Govt. can easily tell these builders to do so in rural areas. Mumbai is going to suffer very badly. Every nook and corner is being over-exploited to create buildings. There is no sight of any infrastructural improvements. Bi(jli)Pa(ni)Sa(dak) could become an election mantra in South Mumbai too. As it is, no light, no water, no road. Whatever there is of a road is full of hawkers, cars and people walk on roads in place of footpath.
Rambabu Shastri
1 decade ago
Builders greed hath no bounds. Every glimmer of milking people of their money for housing is taken as opportunity to increase prices. The way MCHI and the Maharashtra Govt. have signed a deal for 5 lac homes for the needy just stinks. Also, the builders may not last to complete those homes in 5 yrs. And, the Govt would do well not to back builders as any bailouts are misused.
Govind Gadiyar
1 decade ago
Dear All,

I have been around Thane market to buy a 2BHK since last one year and gave up when realized that it is a bubble created by Mafia, Politicians, Bankers and Builders. It will go bust just like Tokyo in 1989. The tragedy is that Japanese economy was so badly hit and they are still struggling in 2010.
1 decade ago
prices in mumbai are going in multiples to prices in USA-
so better buy a farm house in usa then in mumbai
T K surana
1 decade ago
just 3 words for mumbai realty market.
Boom boom BURST !!!!!
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