Knight Frank said buyers of luxury homes in Mumbai are expected to reduce due to the deteriorating economic environment affecting market liquidity and a 1% surcharge on the stamp imposed by the Maharashtra government.
Mumbai: Prices for luxury homes in Mumbai, the country's most expensive real estate market, are estimated to drop by 1% in 2020. The commercial capital of India has become the seventh global city in terms of price increase, in percentage terms, the Knight Frank report showed.
Prices of sites like Cuffe Parade, Napean Sea Road, Colaba, Lower Parel, Worli, Tardeo, Juhu, Bandra Kurla Complex (BKC), Santacruz (W), Bandra (W), Khar (W) and Prabhadevi are expected to fall next year.
Luxury home property buyers in Mumbai are expected to remain cautious in 2020 due to the deteriorating economic environment affecting market liquidity and a 1% surcharge on stamps imposed by the Maharashtra government, bringing the total at 6%, Knight Frank said.
According to the Knight Frank Prime Global Cities Index for the third quarter of 2019, while Mumbai ranked 28th among the most growing residential markets in the world, registering an annual increase of 0.8% in average capital value in the third quarter of 2019, prices remained stable In the last three months.
In the past decade, we have seen a rise in the price of luxury homes in Mumbai by 12.7%. The index also indicated that the change in preferential housing prices for 45 cities followed by the index reached 1.1% per year during the third quarter of 2019, as it grew at a slower rate in a decade.
The demand and sales of Luxury homes in Mumbai are expected to decrease slightly, while it is estimated that the supply of luxury homes will decrease significantly in 2020, according to Prime Global 2020 projections. The highest in Mumbai is currently Rs 64,775 per square foot, making it the most expensive city to buy luxury homes in India.
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