The Real Estate market in Mumbai ended up taking body blows in the second half of 2016 fiscal year as housing launches and sales nosedived by 53% and 26% respectively on account of demonetisation, a Knight Frank report claimed.
“The announcement of demonetisation of high value currency notes on 8 November 2016 disrupted market sentiment and accordingly a major dent on the residential market came in Q4 2016, which saw sales plunge by 50% to 8,617 units. The magnitude of decline in launches was larger at 77% to 2,617 units,” the report mentioned.
As per the report, in the early first half of 2016, Mumbai Metropolitan Region (MMR) residential market witnessed its best growth momentum after the 2008 global financial crisis.
“Residential launches and sales grew by 29% and 23%, respectively, over the same period last year. The signals were optimistic even for the remaining part of the year thereby raising hopes that the MMR residential market that has been on a downward spiral since 2010 would see a growth in sales in 2016,” the report cited.
The worst affected were the premium markets of South Mumbai and Central Mumbai with sales recorded lower by 54% and 41% respectively in H2 2016 compared to H2 2015.