Prices of houses in Mumbai rose by 66% in 4 years and by 74% in Navi Mumbai: Report
According to a report, the price rise in realty sector for Mumbai, Thane and Navi Mumbai represent the highest among all cities in India.
Housing prices have increased by an average 66 per cent in Mumbai over the last four years on account of steady demand and rising input cost, according to property consultant Jones Lang LaSalle (JLL).
The increase has been even higher at 70 per cent in Thane and 74 per cent in Navi Mumbai.
"The cumulative price escalation figures for Mumbai, Thane and Navi Mumbai represent the highest among all cities in India," JLL India Managing Director (West) Ramesh Nair said in a statement.
Gurgaon and Bangalore saw price appreciation of 52 per cent and 46 per cent, respectively, during this period.
"Residential property prices in Mumbai have increased steadily after the correction seen post the Lehman debacle. In the period from the second quarter of 2009 to the same quarter in 2013, residential real estate prices in Mumbai have increased by 66 per cent," Nair said.
On reasons for price rise, Nair noted that the demand for investment residential properties and end-user homes in the country's financial capital has remained stable. That apart, the consultant attributed the prices movement to limited supply of clear land, reduction in new launches between 2011 and 2012 middle and high interest rate scenario.
"In the Indian city which has for years carried the unwholesome reputation of being the most over-priced in terms of residential real estate valuations, there is no relief in sight for aspiring home buyers.
"Over the last four years, property valuations in the financial capital have increased by an average of 66 per cent. All 'expert' predictions over the last 3 years, of an imminent correction have proved to be wrong," Nair observed.