The realty industry in six cities—Mumbai Metropolitan Region, Pune, Hyderabad, National Capital Region, Bengaluru and Chennai has reported around 25%-35% decline in sales in the fourth quarter of the last fiscal which ended in March 2010 compared to the previous quarter which ended in December 2009.
In Mumbai, the scenario was the worst, as real-estate sales were almost nil during the fourth quarter of the previous fiscal. “Sales are down by 35% compared to the last quarter in Mumbai. There is a downfall in sales in almost all the six cities in the fourth quarter (of the last fiscal). This shows that inventories are again rising in all these places,” said Pankaj Kapoor, founder, Liases Foras.
The prices of properties in the western suburbs of Mumbai have dramatically increased in the last quarter. There is no logic behind this increase in price—only speculation seems to be driving the rise. Rates have gone up by 25%-30%, keeping buyers away from the market.
Earlier, properties away from south Mumbai used to quote at a lesser price. But now, a property at Andheri and Kandivali, both Mumbai suburbs and separated by a distance of almost 13 km (Andheri is closer to south Mumbai) are quoting almost the same property prices. A two-bedroom hall kitchen (BHK) of 1,080 sq ft in Thakur Village, Kandivali (East) is priced at Rs135,00,000 while a two-BHK of 1,097 sq ft is tagged at Rs140,00,000 at Andheri (East).
In the third quarter (Q3 FY10) property prices in Kandivali ranged between Rs7,000 per sq ft-Rs9,000 per sq ft but now the current price in this area is Rs12,000 per sq ft. Same is the scenario at Andheri, property which was tagged at Rs10,000 per sq ft in the last quarter is now available for Rs12,000 per sq ft-Rs14,000 per sq ft. — Pallabika Ganguly
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