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Residential market dips as demand for commercial spaces increase

Residential market dips as demand for commercial spaces increase

As per a new real estate report released by property consulting firm, Knight Frank India, apartment sales across the country only saw an increase of 1% in 2019. But office spaces continued to thrive across the country as well as Mumbai. 

The city reportedly saw the best office space absorption at 9.7 million sq ft which is a big increase from 2018 which saw absorption of 7.9 million sq ft. Mumbai (22 per cent), however, came in third to cities like Hyderabad and Kolkata which saw growth of 82 per cent and 69 per cent respectively. 

As for new homes in Mumbai, the report mentions that the second half of 2019 saw a dramatic fall of 14 per cent in housing sales as compared to the second half of 2018. 

“The Mumbai Metropolitan Region (MMR) has been hugely negative, along with Pune, among the top eight cities. In 2018, we had 31,481 units selling in MMR, but only 27,212 sold last year,” said Knight Frank India executive director, Gulam Zia. Further, the weighted average prices in Mumbai were down 14 per cent since 2016’s peak period and 2 per cent since 2018. 

Affordable and compact housing remained popular in 2019. The report goes on to add that between 2014 and 2019, the average size of an apartment has shrunk by 25 per cent. This is a trend that we expect to continue over the coming years as well. Further, 61 per cent of new offers for homes in the second half of 2019 were said to be in the sub-Rs 75 lakh bracket with Thane seeing the highest growth at 36 per cent compared to the same period last year. 

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