The prices of residential properties in Mumbai declined in 2017 for the first time in a decade because of demonetisation, new rules to protect consumers and the Goods and Services Tax, international property consultant Knight Frank said in a report published on Wednesday.
“Unlike the conventional narrative, developers cut down prices to offload their unsold inventory,” Samantak Das, chief economist and national director at Knight Frank, wrote in the report. He said the base price has dropped by 5%, which, combined with other offers, discounts and freebies, “translates into an effective price benefit of 11% to 12% for buyers”.
Real estate developers concentrated on completing existing projects, and as a result home launches in the second half of 2017 declined 23% compared to the same period in 2016, Knight Frank said. Residential sales, however, rose 19% year on year in the second half of 2017.