Mumbai House sales down 24%

 Paras Gundecha, President, MCHI

In the first nine month (January to September)  of current year (2011) , sales of residential property in Mumbai, dipped 24% against the same period in 2010. Major reason as high  property price and high home loan interest rate.

According to data released by Director General of Registrations, Mumbai, 'Lack of low cost (Affordable) houses is compelling buyers to postpone purchases as 3 out of  4 residences cost at least Rs. 75 lakh. About  27% of such houses in the Mumbai have no takers'.

Since  2007, The property  transaction volumes have plummeted about  70%.

Mr. Paras Gundecha, President, MCHI (Maharashtra Chambers of Housing Industry), said “We are unable to sell more flats. Plot of Land price & construction costs are increase and high, lack of funds to complete projects and government approvals also delay and not happening. Buyers are still deferring their purchase decisions in the hope of a price correction."

Property prices in the city are now 20% higher than in 2007. About  63% of the total unsold houses are in peripheral central suburbs.

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