Home Sales In Mumbai Jump To Highest In 4 Years
Home sales in Mumbai jumped to the highest in four years as property developers switched focus to building cheaper apartments, according to Anarock Property Consultants.
Sales in Mumbai rose 22 per cent in 2019 even though a persistent credit crunch and economic slowdown curtailed recovery in India's housing sales across top seven cities.
Macrotech Developers, a Trump Tower developer in Mumbai, to Godrej Properties, controlled by billionaire Adi Godrej's family, are building more low-cost homes as the credit squeeze crimps demand for posh properties. New home starts rose 21 per cent across seven of India's biggest cities led by affordable flats, highlighting pent up demand in the segment.
"One of the major factors that helped Mumbai become the showstopper in 2019 was the developers' conscious decision to bridge the demand-supply gap," said Anarock's Chairman Anuj Puri. "The region saw maximum supply in the affordable category -- something unusual for this market."
But overall housing sales growth slowed to 5 per cent, according to data from Anarock. India's property market was just recovering from back-to-back blows in the past few years, including a cash ban, new regulation and tax structure, when it faced yet another challenge in the form of a severe credit crunch as its key lenders -- non-bank financiers -- started collapsing.
The credit crunch is now feeding into -- and worsened by -- an economic slowdown that's hitting demand for goods and services. In 2018, housing sales across top seven cities had grown by 17.6 per cent according to Anarock, but the worsening economy has put a break on this revival.
"The unrelenting liquidity crisis, lower-than-expected buyer sentiments and faltering GDP growth eventually put brakes on the overall housing growth in the second half of 2019," Mr Puri said.
Other highlights from a report launched by Anarock today:
- Mumbai Metropolitan Region and Pune saw highest growth in residential sales in current year, while sales declined in Bengaluru, Hyderabad and Kolkata
- Affordable housing continued its growth momentum in 2019 with overall new supply rising by 22 per cent on year in 2019
- Unsold housing inventory declined 4 per cent to 648,000 units
- Average residential property prices across the top cities increased by 1 per cent in 2019 except Kolkata and National Capital region, where prices remained stagnant
"Residential growth in 2020 will mainly depend on the swift on-ground implementation of some of the previously-announced sops," Mr Puri said. "A major part of the residential growth will most likely unfold in the second half of 2020."
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
-
When Everyone Has AI, What Gives You An Edge?
India's young workforce is entering an uncertain world of work where powerful AI tools are becoming widely accessible. The advantage will belong to those who combine deep expertise with digital fluency, and the distinctly human capabilities that technology cannot manufacture.
-
Misc
