Mumbai’s residential home sales recovered from a 30-month low in the third quarter as new projects boosted supply, according to Liases Foras Real Estate Rating & Research Pvt.
Sales in India’s most expensive property market rose 13 percent from the previous quarter to 9 million square feet, says Pankaj Kapoor, Managing Director of Liases Foras.
“There have been some new project launches at the lower end of the price range in the last quarter, which have resulted in an improvement in sales. Prices still remain at a record high though.”
India’s central bank, which has increased rates 13 times since March 2010, signaled it is nearing the end of its record tightening cycle in its policy statement on Oct. 25. The bank increased the repurchase rate to 8.5 percent from 8.25 percent.
An end to the rate increases may ease the liquidity squeeze faced by developers grappling with high borrowing costs and lower sales.
The city’s unsold inventory climbed to a record 110 million square feet, according to Liases Foras, a Mumbai real estate research company whose clients include Housing Development Finance Corp., India’s largest mortgage lender. The weighted average selling price in Mumbai climbed to a record 10,021 rupees ($206) a square foot, the data showed.
