Mumbai's Luxury Residential Sales Declines

Bangalore:  In Mumbai, the month of June has brought mixed fortunes for the city’s real estate sector. The country’s financial hub, Mumbai has witnessed drop in residential sales, mainly in the luxury segment, according to a report published by property consultancy firm Jones Lang LaSalle, reports Preeti Kulkarni of ET Bureau.

In terms of rentals, Navi Mumbai witnessed a hike, whereas the rest of the residential market remained steady. The report said that "Capital values also remained stable during the month, except in areas such as Kharghar, where they rose marginally."

According to the report, "Office leasing continued to be moderate on the back of stable office space demand in Mumbai during June. Despite there being few new completions during the month, the vacancy rate inched up marginally as compared to previous months' levels. Moderate pre-commitments in new completions during the month were one of the reasons for this trend,” reports Economic Times.

In the city’s commercial real estate segment, property prices and rental values continued to remain stable. The study further said that "This was largely due to developers encouraging cautious occupiers to execute their real estate plans, amidst uncertain global macro-economic conditions.”

In terms of retail, the city witnessed a drop in vacancies as no new malls have completed in the month of June.

"Due to lack of quality malls in the city, retailers' demands seemed to be polarised towards stand-alone formats, high streets and mixed-use developments. Pre-leasing activity also rose marginally during the month for the aforementioned reason," according to JLL report.