High costs of residential units, especially in Mumbai and the National Capital Region (NCR) have resulted in tapering volumes. A quarterly preview from Mumbai-based brokerage Angel Broking says that residential prices in Mumbai and NCR are currently ruling 15-30% above the peak levels of 2008, whereas prices in most other markets are still 10-15% lower than their last peak levels. The report says registrations in Mumbai have declined by 25% year-on-year and are at their 27-month low in August this year and in the NCR they are down by about 20% from their mid-2008 peak.
Even in the commercial segment, vacant space in shopping centres has increased because of high real estate costs and lower consumption. Data from Jones Lang LaSalle, a global property consultancy firm, shows that while the commercial sector is expected to get a supply of 55.1 million square feet this year.
