Record break decline in housing demand in Mumbai

By Accommodation Times (www.accommodationtimes.com)

The quarter end December property market reports shows the record break drop in home sales comparatively in the previous three years, as this happening due to rising interest rates of home loans it has damaged the demand.
According to the Liases Foras Real Estate Rating & Research Pvt says that Mumbai is the costliest property market across the country. It has dropped by 17 percent comparatively from the last quarter to 7.59 million square ft. The senior official of organization said that, “healthy market” normally maintains about eight months of inventory.
On the other hand central bank has increased borrowing cost highest point so far by 375 basic points 13 times from March 2010 to control the inflation rate, hurting demand and investment. The RBI also cut the nation’s growth forecast three days ago to 7 percent in the year through March from the 7.6 percent predicted in October, after the economy expanded at the slowest pace in nine quarters, based on the most recent government data.