India

Apartments in South Mumbai remain expensive, reaching about US$15,900 per square metre (sq.m.) for 250 sq.m. apartments, according to Global Property Guide research.

Smaller apartment prices range from about US$10,900 per sq. m. for 75 sq.m. apartments, to about US$11,300 per sq. m. for 120 sq.m. apartments.

These are slightly lower prices than last year.

South Mumbai has very low rental yields, with property investors earning 2.56% to 2.68% gross.

Volumes appear to be falling. A 40% decline in new home purchase volumes in Mumbai since 2011 is reported by Credit Rating and Information Services of India (CRISIL). Buyers are cautious, and are adopting a wait-and-see approach.

However increases in service taxes and the new Development Control norms announced by the state should put upward pressure on prices, according to both Cushwake and Colliers.

In New Delhi, prices per sq. m. continue to increase. In 2011, the price per sq. m. of a 250-sq.m. apartment in New Delhi was around US$4,300. Today the price of the same apartment has increased by around 14%, to US$4,900 per sq.m. India’s National Housing Bank (NHB) reports a much bigger increase, with Delhi property prices increasing by around 33% y-o-y to Q1 2011.

Rental yields in Delhi have improved, at least for the largest apartments (250 sq. m.), which now earn rental returns of 2.42%, up from last year’s 1.71%.

In Bangalore, prices of apartments range from around US$1,100 per sq. m. (120 sq. m. apartments), to US$1,400 per sq. m. for 250 sq. m apartments.

Rental yields are higher in Bangalore, ranging from 3.40% to 3.96%.