The sales of residential units in big cities is being continuously pulled down. High prices and low demand have pulled down the volume of residential units selling and it has come down by 77 per cent in Gurgaon and 45 per cent in Mumbai, during the fourth quarter of 2013 when compared with the corresponding period last year, a report by Goldman Sachs said.
By volume, sales in Bangalore
witnessed 6 per cent up
year-on-year, but Gurgaon
went down 73 per cent and 36 per
cent respectively, Goldman Sachs said, quoting a data from
For the sales trend price
escalation is no doubt a primary reason. As was reported by the
Business Standard, Goldman Sachs further reports that over the past
four years, Bangalore has seen an average price increase of 10 per
cent compared with 25 per cent for Gurgaon and 17 per cent for Mumbai
?Overall sentiments are
down due to high prices and delay in competition of projects.?said
Santhosh Kumar, chief executive (operations), JLL, a global property
consultant. People are expecting new polices from the new government,
reducing rates to reduce their burden, he added.
In the fourth quarter of
2013 Bangalore has witnessed 56 per cent decline in absorption of
commercial properties witnessed, where NCR and Mumbai have
experienced a jump of 21 per cent and 3 per cent, respectively.
Further the study claims
that vacancy levels in Mumbai and NCR are at 30 per cent, in
Bangalore it is at 4 per cent.
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