Mumbai's Residential Property Market Down By 9.1 Percent

Bangalore: Mumbai, the financial hub of India has dropped down by 9.1 percent in residential property market during the first quarter of 2012, according to the latest study done by Knight Frank Prime Global Cities Index, which ranked the performances of prime sales markets across major global cities, reports Kailash Babar of ET Bureau.

The report shows that the prime property values in the world’s major cities shot upto 1.4 percent in the FY 2011-12. But after the first quarter of 2012, this index dropped down to -0.4 percent, which highlights that the value of prime properties is showing a negative growth.

According to Anand Narayanan, national director (residency), Knight Frank India, "Affordability is relative. The real issue plaguing the market is lower customer confidence due to various factors like interest rates rise and regulatory issues." "Although some of these have moved into neutral zone; interest rates have taken a directional 'U' turn, things would be upbeat once there's good news on income (salaries and bonuses) front," says Narayanan.

In Mumbai, most of the potential home buyers are waiting for price correction in the market scenario of ‘less demand and more supply of homes,’ also more housing projects are under construction which gives a scope for drop in property prices.

Nairobi has topped the list of strongest performer in the last 1 year, whereas in the last 3 months, Dubai prices are up by 4 percent, said the report.