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Residential sales in India’s top-six cities have fallen 17 percent in 2014. In Mumbai, where new launches were down 43 percent in 2014, prices went up by 10 percent on an average. It also adds that prices are expected to rise further as 2015 unfolds, though a sharp upswing may not be on the cards.

Shares of realty stocks are up as residential property prices are on an uptrend. The Realty index is up 2.4 percent from previous close. Consultancy firm Knight Frank has said that that despite sluggish demand seen in residential property markets over the last year, residential property prices are going higher. According to the firm, residential sales in India’s top-six cities have fallen 17 percent in 2014. In Mumbai, where new launches were down 43 percent in 2014, prices went up by 10 percent on an average.

It also adds that prices are expected to rise further as 2015 unfolds, though a sharp upswing may not be on the cards. Samantak Das, Chief Economist and Director, Research, Knight Frank said: “We expect sales of the combined six cities to go up by 4 percent over the same period last year in the first half. However, the launches will still fall by 4 percent. There is always an upward pressure in price. We don’t see much significant increase in price in the top six cities going forward.”

Commercial real estate prices, both rental and on sale, are also rising. That’s because new launches have dropped 6 percent in 2014, and absorption, or demand, is up 14 percent, with vacancy levels shrinking to 17.5 percent from 19.6 percent. Knight Frank says that while the first half of 2015 will see some consolidation by developers, it’s the second half that will see them get any actual traction in sales.

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