Mumbai saw a drop in the home rates for the first time this decade. The effects of demonetization and GST have led to a decline in real estate rates by 10%. Knight Frank India, a reputed real estate firm has confirmed the news by saying, ‘The weighted average prices were down 5% YoY in 2017.’
Residential base prices have come down by 5% along with other discounts or offers. These help buyers with the purchase of apartments in effective rates.
“This includes a bouquet of incentives such as waivers on stamp duty, floor rise and assured rental schemes,” said Samantak Das, Chief Economist and National Director, Knight Frank Research. Surprisingly, The number of apartment sales reported in the last three months of last year were high, which was 15,265 as compared to 8,416 sales during the same period in 2016. This was when demonetization was announced.
Lower Parel, Prabha Devi and Worli are the locations in Mumbai that hardly see any growth in the market. The western suburbs is also not flourishing and have many unsold flats. Areas from Mira Road to Bhayander have however achieved a gradual growth in the real estate sector.