Property prices stay put
Real estate prices have remained untouched in last quarter of 2013, regardless of political uncertainty, liquidity issues, high interest rates and cautious sentiments. Property rates at Colaba, Marine Drive, Dombivali, and Ambernath went down by seven to 13 per cent whereas rates went up by 10 to 12 per cent at places like Hiranandani, Lower Parel, Worli and Chembur. As per real estate pundits, who have accepted this trend, in coming election time the prices may see a downfall as buyers have started waiting.
Recently it has been seen in a report that the real estate website 99acres.com shows that there has been no change in property prices in Mumbai in the fourth quarter of last year, i.e. October 2013 to December 2013, as compared to the third quarter i.e. July to September in the same year. Buying and rental price trends in residential real estate across seven major cities of India can be seen in quarterly report. According to the report, in Mumbai, the residential property prices per square foot remained unaffected in the above mentioned periods. We can see that there is no change in the rental movement when there was comparison of the fourth quarter of 2013 with the fourth quarter of 2012.
As stated by Vineet Singh, business head of 99acres.com, Mumbai’s status as the financial capital of India has certified that capital prices in the region have stayed above normal. Due to rising prices there has been a steady decline in transactions in past few months, both in the primary and secondary market. When added with the delayed construction time we can see that there is delay in delivery of projects, which has renounced the price stability in the region.” Furthermore he added, “The city is expected to see a price alteration over a period of a year to ensure the symmetry of demand and supply in real estate.”
Traditionally we have seen that the property prices have been high in Mumbai. However, the capital prices in Mumbai region have stabilised in the past year. As per report key localities in Mumbai like Worli, Breach Candy, and Mahim (west) have seen an increase of only two per cent in October to December 2013 as compared to July to September 2013.
The report also shows the price trends in other metros. The Delhi–NCR region has seen a demur of two per cent, while Bengaluru, like Mumbai, has seen no change in capital price. Delhi-NCR region has seen a downfall in rentals, with a decline of seven per cent, while Bangalore has seen a four per cent increase in rents in last quarter of 2013 as compared to last quarter of 2012.
Source: Asian Age
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