Home prices in country’s financial capital, Mumbai dropped for the third straight year as apartment buyers deferred purchases amid an economic slowdown, general elections and a shadow banking crisis in the country.

Cost of residential properties in Mumbai tumbled by more than a 10th from their peak in the second half of 2016, data compiled by Knight Frank shows. Despite the price corrections and three back-to-back rate cuts by RBI, home buyers still preferred to remain on the sidelines waiting in anticipation for a further price correction, the property consultancy firm said in a report on Tuesday.

A slowdown in India’s economic activity is dampening buyers sentiments and Mumbai’s struggles have echoed through other cities including Pune, Chennai, and Kolkata, which reported a slump in apartment values.

The residential property market has remained in a turmoil in the past three years as buyers and developers struggled to reconcile with a new regulator, tax regime and a cash crunch in the shadow banking sector.

The mood of residential realty in Mumbai continues to be somber and withdrawn, Gulam Zia, Executive Director at Knight Frank, said in the report. With more skeletons tumbling out of NBFC cupboards the shadows on housing industry are getting longer.

Residential sales across India’s top eight cities increased 4% year-on-year in the first half 2019 and project launches jumped 21% driven by affordable apartments. Unsold inventory across top eight cities recorded a decline of 9% in 1H 2019.

Mumbai was the only market to record an increase in inventory overhang of 14%. Office property market continued to perform well with both supply and transactions rising to decade high driven by demand from IT services and co-working spaces.

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