Real estate property deals falling due to higher rates
Documented property registration in Mumbai, Thane and Pune divisions fell in the last financial year.
As per a rough estimate by a real estate analysis firm, at least 40,000 flats have remained unsold in Mumbai and Navi Mumbai areas. The actual number could be higher than that.
Though, the amount of stamp duty collected by the department of registration and stamp duty, the number of registration has been reduced by the time.
This is happening because of the higher interest rates on home loans, revised ready-reckoner rates and high-valued transactions.
In January, the ready-reckoner rates were revised and they were increased by about 20%. It naturally added to the value of properties in Mumbai and prices escalated.
It is also reported that most upcoming constructions are not very close to business hubs in Mumbai and Navi Mumbai.
The exorbitant prices certainly reduced the number of documents processed in Mumbai and Navi Mumbai region, but the deals that took place in the financial year 2011-12 were of much higher price.
Unlike Mumbai, Pune has an advantage of horizontal growth which is keeping the prices slightly lower than the state capital.
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Source: Times of India
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