Realty sales in Mumbai Metropolitan Region (MMR) have decreased. The total area m sq ft sold in MMR in December 2009 as against September 2009 quarter, has fallen. Prices have gone up or remained flat in few instances. This implies that homebuyers are sticking on to their demand and applying control. Demand for expensive houses has been the worst hit.
According the data compiled by Liases Foras, flats priced at Rs 1 crore to 2 crore have witnessed a drastic reduction in demand despite what most developers in this area say. The same trend is evident in the homes costing more than Rs 2 crore. This is different from places such as Bangalore, Hyderabad and NCR, where sales have increased, thus showing that the rules applicable to other markets do not apply to Mumbai market. The chief cause for it is that the property rates have decreased in other cities, while they have gone up in Mumbai.
MMR’s business turnover index (BTI) showed a 32% drop in the final quarter of FY09.
Mumbai developers have scant land resources to build upon as agianst NCR builders, due to which they make the most of what’s available. The efficiency index in MMR has also decreased, the highest fall evident in the Rs 1 crore to Rs 2 crore segment.