Posts Tagged ‘mumbai real estate’

NCR Realty Hot While Mumbai Realty Cools

Difference due to pricing; up by a third in Mumbai since Jan, almost stationary in Delhi.

Sanjay Sanghvi, a real estate consultant in the Dadar area of Central Mumbai, says these days he barely manages to broker two-three apartment deals a month, compared to half-a-dozen almost a year ago.

 "It is difficult now. People are reluctant to buy, as prices have gone up sharply. They will buy only if prices come down," says Sanghvi.

Sanghvi says he is flooded with sales calls from developers — including Indiabulls, Lodha Group and DB Realty — building high rises in Lower Parel-Worli-Parel area of south-central Mumbai. Prices in this erstwhile textile hub range from Rs 22,000 to Rs 35,000 a square feet.

Sanghvi's case is just an instance of dwindling home sales in the country's commercial capital, following steep rises in prices over the last one year. According to realty research company PropEquity, home sales in Mumbai have fallen 35 per cent since the beginning of the year and 45 per cent since June this year

But the scene is quite different in the national capital region, or NCR, which comprises New Delhi and its satellite towns such as Noida, Gurgaon, Ghaziabad and Faridabad. Property sales in these areas have gone up nearly 90 per cent since the beginning of the year.

Price is obviously the main factor. Data show that prices in Mumbai city have risen 28 per cent since the beginning of the year and 13 per cent since June.

"During 2008-09, nobody was buying and prices were at reasonable levels. A lot of pent-up demand came into the market after that. But after so much hectic buying and price rise, sales are bound to take a knock," says Anshul Jain, chief executive of DTZ, an international property consultant.

In most areas of the NCR, however, prices have remained stagnant since the beginning of the year. For instance, in Noida, average property price hovers around Rs 3,341 a sq ft, compared to Rs 3,140 in January, a mere five per cent increase. Prices have gone up by 1.48 per cent in New Delhi since the beginning of the year.

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