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The residential property prices in Mumbai have seen a marginal increase of two per cent in the first quarter of 2014 ended March as compared to the fourth quarter of 2013 ended December last year. However, a year-on-year comparison between Q1 of 2014 against Q1 of 2013 shows no change in capital prices in Mumbai.
These findings were revealed in a quarterly report released by 99acres.com Insite which focuses on buying and rental price trends in residential real estate across seven major cities of India.
99acres.com is website which serves as an information 'exchange' for buying, renting and selling of all types of residential and commercial properties anywhere in India.
According to this report, average rentals of a 3 BHK house in Mumbai have seen a three per cent increase in Q1 of 2014 against the year-ago period.
Vineet Singh, Business Head 99acres.com, said: “The market will now begin to improve post elections as there is clear policy direction towards economic revival. Fence sitters will buy and sell in the coming months providing the momentum to the market. There is a real possibility of fresh supply of houses coming into the market as well.”
“Though one should keep an eye on the stock market which is doing well and if the momentum continues a lot of HNI and retail investor money will flow into the equity markets thereby dampening real estate to some extent,” he added.
Comparing the price trends with other metros, Delhi-NCR region and Bangalore has seen no change in prices while in terms of rentals, Delhi-NCR region has seen no change and Bangalore has witnessed a four per cent increase in rents in Q1 of 2014 against the year ago period, according to the report.
“Affordable housing has always been a perennial problem in Mumbai region. Also, the real estate market in Mumbai is primarily investor driven which is further intensifying the situation. However, certain localities in Mumbai have shown signs of improvement like Colaba and pockets of Central Mumbai. The region is also seeing a flight of capital with people preferring to buy house in Pune and Bangalore,” added 99acres.com in a press statement.
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