Mumbai Sees A Decline Of 3% In Home Prices.
While Mumbai saw a degrowth Hyderabad only Indian city in Top 20 globally in home price appreciation. Pune lowest-ranked Indian city in terms of home price appreciation, registering a 3.5% decline.
By Varun Singh
Mumbai the maximum city, the financial capital of the country has witnessed a decline of 3% in the home prices. A report by Knight Frank, an International Real Estate Consultancy firm says that Hyderabad is the only Indian city in top 20 globally in home price appreciation,
While the decline in Mumbai home prices is a matter for joy for the home buyers it surely is something that the developers wouldn’t be much happy about.
The real estate market for quite sometime now has been facing a slow down and now it is visible in the prices of the home. With Mumbai seeing a decline, the status of many other cities are worrisome too.
According to the report, Hyderabad is the only Indian city in top 20 among 150 global cities tracked, in terms of appreciation in residential real estate prices, standing at the 14th spot with a healthy 9% year-on-year (YoY) rise in home prices.
Price growth has been strong in the Hyderabad residential market as shortfall in launches diverted homebuyers towards the ready unsold units giving developers a bargaining edge.
Among other Indian cities which have seen an appreciation in home prices, New Delhi stood at the 73rd rank globally, with a home price appreciation of 3.2% YoY; Bengaluru at the 94th rank with a 2% appreciation and Ahmedabad at the 108th rank with a 1.1% rise.
Among the Indian cities which have seen degrowth in home prices, Kolkata was ranked at the 130th spot with a decline of 2%, Mumbai at the 135th rank with a degrowth of 3% and Chennai at the 136th rank with a fall of 3%. Pune was the lowest-ranked Indian city standing at the 138th spot, registering a 3.5% decline in home prices.
The Global Residential Cities Index tracks the movement in mainstream residential prices across 150 cities worldwide using official statistics. Budapest in Hungary leads the Global Residential Cities Index Q3 2019 with the highest annual growth rate of 24%, followed by Xi’an in China and Wuhan in China at 15.9% and 14.9%, respectively.
Knight Frank Global Residential Cities Index Q3 2019
|Rank||City||Country/Territory||12-Month % Change(Q3 2018-Q3 2019)|
Source: Knight Frank Research
Prices across the 150 cities worldwide increased at 3.2% on average, the weakest annual rate registered since the second quarter of 2015. Yet despite this, more than 78% of the 150 cities tracked by the index, registered either flat or rising prices over the 12-month period.
“During the last four years, the growth in residential prices in most of the top eight cities of India has been below retail inflation growth and the gap has progressively increased since H1 2016. Hyderabad has been the only market to buck the trend and record residential price growth over the retail inflation level. This end-user friendly movement in prices across cities is a step in the right direction and more in-line with the contemporary home-buyer’s needs,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
According to a developer, the property rates for a very long period has remained stagnant. In certain pockets of Mumbai, they have come down marginally, but overall Mumbai hasn’t witnessed a huge correction.