Mumbai May See Some Correction In Property Prices In 2020: Knight Frank Report
India’s costliest property market Mumbai will see prices cooling off marginally in the next year due to the overall slowdown that has engulfed the economy.
“Price appreciation of both prime residential properties, and luxury homes in areas such as Cuffe Parade, Napean Sea Road, Colaba, Lower Parel, Worli, Tardeo, Juhu, BKC, Santacruz (West), Bandra (W), Khar (W) and Prabhadevi are set to decline by 1 percent in 2020,” a report by property consultant Knight Frank said. Their study showed that the average capital value of prime residential properties in the megapolis is Rs 64,775 per square feet.
Both demand and sale of prime residential properties in the city are expected to see a slight fall, while the supply of luxury homes is estimated to drop significantly next year, the report said.
Even in 2019, there has been some let up prices of prime properties in the city, which will see further depreciation in 2020, Knight Frank India Chairman Shishir Baijal said.
He said the additional 1 percent stamp duty being levied by Maharashtra will make buyer more cautious going forward. With the increase in levy, the states charges 6 percent stamp duty now.
“In the last decade, Mumbai has seen a 12.7 percent price appreciation in prime residential properties. The index also highlights the change in prime residential prices for all 45 cities tracked by the index averaged 1.1 percent in Q3, growing at the slowest rate in a decade,” the report said.
The Mumbai real estate market had over 2.21 lakh ready-to-move-in units remaining unsold as of September this year.