MUMBAI: Mumbai Metropolitan Region and Pune have seen 50% jump in residential prices in the last five years, which is highest among the top seven cities, said a new survey.
The NCR market prices trended downwards till the end of 2010, post which they have risen more than any other major residential market in the country, said the survey by FICCI-Knight Frank.
Mumbai prices had more than doubled between 2004-08, a period before the global financial crisis.
Pune showed the maximum appreciation amongst the IT/ITeS driven markets of Bengaluru, Hyderabad and Chennai, the survey said.
According to the survey, all IT/ITeS-driven office markets have witnessed rental weakening since 2009 with the exception of Bangalore. Mumbai office market has managed to sustain the rentals with marginal appreciation of 7% since 2009. "NCR office rentals remained stable with a slight downward bias," it said.
The survey said developers, private equity funds, banks and non banking finance companies (NBFCs) perceive that real estate markets are weaker than they are six months ago.
But majority of respondents believe things to pick up in the next six months on the back of improved economic scenario, the survey said.
"There is an evident optimism for the residential sector be it launches, sales volume or price appreciation in the coming six months," the survey said, adding that the office sector on the other hand is expected to be pessimistic in the coming two quarters \
The survey said lending/ funding situation appears worse now compared to six months back and is not expected to improve in the near future.