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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