In what is seen as a booster for Mumbai's realty stocks, 356 homes were registered every day in the first seven days of Navratri. Gulam Zia, Executive Director at Knight Frank explains this trend in detail.
“What we are talking about is a great bounce back all across. Not just Mumbai or Bangalore, but even Kolkata, Chennai and many other markets have seen unprecedented numbers,” Zia said.
“The whole of the Indian economy was doing great pre-pandemic – for almost half a decade demand was building up, but sales were down. Sales were gradually going down year after year. So, half a decade of pent-up demand is what I would call this,” he said.
Looking back at the 10-day performance up to Dussehera, more than 400 units were sold per day in Mumbai city alone, Zia noted.
In terms of prices, he said, “The developers have already brought down their prices. Taking it further down is not possible because that would mean taking losses.”
Prices would gradually tick up over the short to medium term, he noted.
“Premium developers have started taking prices up by 7-10 percent. In a few projects, they were successful in convincing consumers that a 10 percent rise is worth paying for,” Zia said.
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“We will have to wait for six-seven quarters before we convincingly say that prices have started shooting up. For the moment, prices have bottomed out, and it will remain stable for a couple of quarters, for sure,” he stated.
For the full interview, watch the accompanying video.
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