Property prices in the Mumbai Metropolitan Region (MMR) dropped by the maximum among leading metros during the quarter ended March 31, 2015, according to a report.
Weighted average price per square foot saw a 2.10 per cent decline, according to the report by Liases Foras, a property research and consultancy firm.
However, despite the decrease per square foot, weighted average price of a new house in MMR continues to be prohibitively high at Rs 1.29 crore while it is Rs 2.95 crore within Mumbai municipal limits. The report said that home prices remained stagnant in the National Capital Region, Chennai and Hyderabad and rose 1 per cent in Pune and Bangalore over the same period.
- Mumbai among top five cities to witness slowdown in home sales
- 35% gap in price of sold,unsold homes: Hint on correction required
- Major residential inventory pile-up in city
- MMR realty sales plunge 60 pc in two years
- Citys realty check: Rs 2.10 cr per flat
- No ones buying a house in and around Mumbai
“Prices have peaked across metros and they will continue to slide. Due to the piling inventory, there will be a downward pressure on prices and a moderate improvement in sales. However, the rate of sales will be way lower than rate at which unsold inventory is growing,” said Pankaj Kapoor, CEO of Liases Foras.
The report also said that MMR had the maximum number of new launches at 17,000 during the quarter.
Currently there are over 1.69 lakh unsold flats in MMR and 59,322 unsold houses within Mumbai.
“This is may be owing to the fact that builders, who have purchased land, cannot afford to sit on it any longer and were compelled to launch projects. Moreover, with approvals speeding up, more supply has been released in to the market,” added Kapoor.