Mumbai property prices buck trend, show overall decline in last decade

The suburbs of India's financial capital Mumbai have found their real estate value just marginally increased over a span of 10 years between 2013 to 2023. This, despite Greater Mumbai area being considered the most expensive real estate market in the country.

While the media often highlights the sale of luxurious apartments or extravagant penthouses in Mumbai at record-breaking prices, data shows that individuals who purchased flats during the past decade and later sold their properties barely made any significant gains.

According to real estate research and rating firm, Liases Foras, Mumbai has demonstrated zero netgrowth in property prices over the past 10 years. In fact, the average price in the larger Mumbai Metropolitan Region (MMR) has declined by 10 per cent.

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In comparison, locations in the western and central suburbs appreciated just 23 per cent and 17 per centrespectively, in the past 10 years.

"The city's new development control and promotion regulation (DCPR 2034) has further increased the floor space index (FSI) in all housing schemes. This will ensure that property prices do not increase in the coming years," a developer was quoted as saying by The Times of India.

In 2013, the average price per square foot in MMR was Rs 18,845, and after a decade, it currently stands at Rs 18,708 per square foot, indicating a decline of 1 per cent.

Hyderabad city had most increase in its real estate value

In contrast, other cities have experienced substantial increasein property prices during the same period. Hyderabad witnessed an impressive 98 per centappreciation, almost doubling its prices, followed by NCR with a 63 per cent average price increase, Ahmedabad with 58 per cent, Bengaluru with 38 per cent, Chennai with 35 per cent, Kolkata with 37 per cent, and Pune with a 20 per cent growth rate.

Mumbai recorded unprecedented growth in property prices between 2004 and 2008. Rates in many projects across the city doubled and even tripled during this period. But inthe last 10 years, there has been a virtual stagnation in the prices.

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