Indian Property Prices Rising Steadily Despite Economic Slowdown

Home prices in Mumbai, India’s most expensive real estate market, rose to a record last quarter even as sales slowed, according to Liases Foras Real Estate Rating & Research Pvt.

Prices in Mumbai increased 2.9 percent to 11,626 rupees ($215) a square foot in the three months to March 31, the data showed, while sales climbed 1 percent, from 5.7 percent in the December quarter, to 10.45 million square feet. Total housing stock in the city advanced to a record 150 million square feet as of March 31, the property research company said.

“Price increases were persistent across cities,” Pankaj Kapoor, founder of Liases Foras, said in a telephone interview from Mumbai yesterday. “The decline in Mumbai prices in the December quarter, which hinted towards a further correction, could not be sustained.” Mumbai prices slid 1 percent in the December quarter.

The Reserve Bank of India cut funding costs in March for a second time this year to 7.5 percent. The central bank, which is scheduled to meet on May 3, has said lingering inflation reduces the scope for further cuts.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu