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Indian Real Estate News : Mumbai
Mumbai residential property prices up 20% from '07 highs
Source: Jul 18, 2011
Mumbai residential market property prices have risen to more than 20 per cent over their 2007 highs, which led transaction volumes to plummet. The Maharashtra State Stamp and Registration department data has shown total property registrations have declined 20 per cent for the six-month period ending June 2011 as compared to the corresponding period last year.

June, 2011 recorded a 30 per cent decline in registrations compared to June, 2010, said international property consultancy Knight Frank India.

"Consequently, unsold inventory levels have been steadily rising since forst quarter of financial year 2010-11," Samantak Das, national head research at Knight Frank said in a report.

Unsold inventory levels are at present estimated to be approximately 21 per cent of the under construction stock in Mumbai. Also, the investors' segment, which makes up approximately 20 per cent of the market demand is actively reducing its real estate portfolio thereby adding significant shadow supply into the market.

Price levels have however proved to be more resilient but it remains to be seen how long they will sustain as the market tilts slowly and surely towards the buyers, the report said.

The Mumbai real estate market has stagnated over the previous three quarters with buyers largely keeping away from the market with the expectation of an imminent drop in prices in the near future.

The report said on a quarterly basis the rate of growth in revenue has been reducing with every passing quarter for 22 listed real estate companies. Revenue growth in first, second, third and fourth quarter of 2010-11 has been at 48 per cent, 29 per cent, 10 per cent and eight per cent, respectively.

Slowdown in demand, rising input costs and increase in interest rates have started impacting margins of developers. Poor performance by realty companies is being reflected in their share price indicating the lack of interest by investor community towards the sector, the report added.

Tag: Real estate in mumbai, mumbai property, mumbai properties, apartments in mumbai
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