Commercial Real estate inventories are rising, says Bloomberg.
Vacancy rates in the financial center of Mumbai and capital New Delhi topped 20 percent in the third quarter, the highest in Asia after Chengdu, China, where 32 percent of offices are empty, according to broker Cushman & Wakefield Inc. Six Indian cities are among the 10 office markets with the worst vacancies in the region, according to Cushman.
And then, Livemint has this for us:
Nearly 290,000 residential units are under construction in the Mumbai residential market while unsold inventory levels are close to 130,000. Unsold inventories constituted units in ready as well as under construction projects.
“The fact that the unsold inventory level in the Mumbai Metropolitan Region is almost 45% while that in the National Capital Region (NCR) is 26% gives a perspective of the dire situation of the Mumbai residential market, considering that the NCR has nearly twice the number of units under construction compared to Mumbai.” said Samantak Das, chief economist, director-research and advisory services, Knight Frank India.
A Knight Frank Report has this chart:
Note: We have a great post on housing prices at Capital Mind Premium, on the Residex, the NHB’s Housing Price Index. We have even derived an all-India Index, with the chart below. This is an average of a 15 cities, with different weights given to Metros, Tier2 and Tier3 cities.
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While prices haven’t really dropped according to our index, the growth rate has come down substantially.