Mumbai Hit by Lowest Home Sales in Three Years

Bangalore:  Sky-scraping interest rates, high property prices, low demand has all summed up to Mumbai experiencing huge decline in home sales. The city is going through a bad phase as the home sales is all time low in 3 years because of the record prices eventually denting demand, according to real estate rating and research, Liases Foras, reports Pooja Thakur of Bloomberg.

Pankaj Kapoor, founder of Liases Foras stated that, Mumbai, the most pricey property market has declined 17 percent from the prior quarter to 7.59 million square feet. He further added by saying that, for “healthy market”, it takes around eight months to clear the unsold inventories but because of less absorption, it rose to 44 months to clear the unsold inventories.

“The likely scenario looks like we will see a dip in prices seeing the dismal sales and as liquidity remains tight,” Kapoor said in a phone interview to Bloomberg.

To control inflation, slow demand and investments, India’s central bank has raised borrowing cost by a record 375 basis points. And As per the recent government data, RBI has cut the nation’s growth forecast to 7 percent in the present year till March from 7.6 percent as predicted in October because of sluggish economic growth.

According to Liases Foras data, the unsold inventories of Mumbai have reached to a record of 119.85 million square feet and the average selling point has mounted to a record of 10558 a square feet.