Mumbai’s real estate prices increased 7% over the last one year, while Delhi region saw no change in house prices and Bangalore saw a dip of 5% in prices per square foot, according to a survey by real estate portal 99acres.com. In terms of rentals, Delhi-NCR region saw a dip of 3% and Bangalore has witnessed a 4% increase in rents in April-June compared to the same period a year ago.
However, the trend in Mumbai was far from uniform, with certain areas showing 20% plus appreciation, while others showed steep declines.
Rents increased 3% over the past one year on average, indicating that rental yields continue to go down as prices go up.
Interestingly, rental increase was largely on the Western Suburubs, while rental decline was seen in the Central line. The trend could be the result of the opening of the Mumbai Metro, which connects Western Suburubs with the central line.
MUMBAI PRICE INCREASES
The highest purchase price increases were seen Bhiwandi, Kanjur Marg West and Mulund (see chart), while the steepest fall was seen in Oshiwara, Kurla West and Dombivli East.
In terms of rent, the highest increase was seen in Juhu, Santacruz, Bandra and Parel, while declines were seen in Oshiwara, Kurla West, Dombivli East, largely in line with property prices.
The trends are for the three months from April to June of this year compared to the same period of the previous year.
On the slow increase in prices, Vineet Singh, Business Head of 99acres.com said: “Mumbai real estate market is grappling with high property prices which is a perennial problem. The region is witnessing a slack due to delay in new project launches caused primarily by multi window clearance system. The complexity in project clearance coupled with ever changing rules is stagnating the Mumbai real estate market. The city’s realty will face better times only when the rules and regulations are made more pliable”.