There has been a slump in the real estate market post demoninitisation and the recent economic slowdown has also adversely impacted the sector. The price of properties in Mumbai are expected to witness a marginal drop next year after remaining stable in 2019.
The real estate market in Mumbai is known for its price stability despite over 2.21 lakh ready-to-move units remaining unsold as of September 2019. The city has witnessed a 12.7 per cent appreciation in prime residential properties just in the past decade alone.
This can be understood by the fact that in the third quarter of 2019, Mumbai was the 28th fastest-growing prime residential market across the globe, registering 80 base points annual increase in average capital value, despite the prices remaining stable in the island city.
As per property consultant Knight Frank's study, the average capital value of prime residential properties in the megapolis is ₹64,775 per sqft, making it the most expensive city for buying luxury homes.
Price appreciation of both prime residential properties, and luxury homes in areas such as Cuffe Parade, Napean Sea Road, Colaba, Lower Parel, Worli, Tardeo, Juhu, BKC, Santacruz (W), Bandra (W), Khar(W) and Prabhadevi are set to decline by 1 per cent in 2020," said the report.
It further added that Mumbai ranks seventh in the list of global cities in terms of expected price appreciation of prime residential properties. According to the report, both demand and sale of prime residential properties in the city are expected to see a slight fall, while the supply of luxury homes is estimated to drop significantly next year.
"In the last decade, Mumbai has seen a 12.7 per cent price appreciation in prime residential properties. The index also highlights the change in prime residential prices for all 45 cities tracked by the index averaged 1.1 per cent in Q3, growing at the slowest rate in a decade," the study says.
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