Average cost of a Mumbai flat is Rs 3.03 cr: Affordable housing remains a myth in India

The BJP government's promise of affordable homes has remained just that for now as the real estate market in India continues to remain sluggish thanks to high prices and slow sales.

A new report by real estate research firm Liases Foras shows that property sales have fallen 8 percent across the top six cities— Mumbai,NCR, Bangalore, Chennai, Pune and Hyderabad— in the quarter to December but it did not prevent prices from rising. Average prices rose 7 percent in these cities during the period.

Total unsold inventory across the six cities stood at 832.09 million square feet, or 39 month's level against 31 month's a year ago, while new supply in the third quarter of FY15 declined by 9 percent, said Liases Foras.

Of the six cities, Chennai was the worst affected with sales falling a whopping 48 percent year on year, followed by Bangalore, which saw sales dip by 25 percent in a  year and 27 percent over a quarter. This is rather disturbing because both these southern markets have conventionally been a buyer's market where properties were mostly being lapped up by end-users. However, with investor interest pouring in prices in both Bangalore and Chennai have now peaked, which is why the two cities are witnessing a decline in sales, said Pankaj Kapoor, MD at Liases Foras.

NCR saw sales dip by 15 percent while Mumbai Metropolitan Region saw a marginal 1 percent rise in sales volume. Hyderabad was the only city to register a 33 percent growth in sales on year.

On a quarterly basis, home sales saw a 31 percent rise, with the National Capital Region posting a 60 percent increase over the previous quarter, the highest among all cities as several developers offered a slew of discounts which also caused prices to effectively dip 2 percent.

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MCHI-THANE has always been very clear that fine housing complexes and shopping malls cannot stand in isolation. A great City is the sum total of great buildings, great infrastructure and great people. MCHI has been committed to growth of the real estate sector and is credited with the harmonious growth and rise in quality and standards of construction in Thane City in the past decade.

Its aim as an Association of Developers has been to seek rational rules and regulations which are uniformly applied across the board as this will to a great extent result in speedy construction, cost reduction, fair pricing and a push for better quality standards at par with the developed world, with a high level of transparency