Major Indian Cities Including Mumbai Record Degrowth In Home Prices In 2019
New Delhi: There is a degrowth in prices of residential property in many parts of the country including the top cities like Mumbai, Kolkata, Chennai and Pune.
The prices of residential real estate in Mumbai has fallen 3 percent in 2019 over the previous year, according a research by international property consultancy Knight Frank.
The degrowth in home prices in Kolkata has been to the tune of 2 percent in 2019.
Chennai has seen decline in prices equal to that of Mumbai at 3 percent. Pune has seen the largest degrowth in residential real estate prices among major Indian cities at 3.5 percent.
The degrowth in the prices of the residential properties in so many major cities certainly does not bode well for the realty industry which has been reeling under a slow down for many years now.
In a global ranking of 150 cities prepared by the consultancy to gauge the increase in prices of residential property, Mumbai stood at 135th position internationally with its 3 percent decline.
Chennai has been placed at 136th position and Kolkata has been ranked 130th. Pune stood at 138th in the rankings.
Knight Frank carries out Global Residential Cities Index which tracks movement in residential prices in 150 cities globally. Budapest in Hungary’s Budapest has been ranked number one with annual increase in home prices to the tune of 24 percent.
But the prices in all the 150 cities tracked by the index moved up by mere 3.2 percent on average, the slowest since the second quarter of 2015. About 78 percent of the 150 cities tracked saw either neutral or rising prices.
“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,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.