Housing Sales in Mumbai reached the highest level in the past 4 years.

Home sales in India’s financial capital, Mumbai, rose to the highest level in four years, as developers focused on building cheaper homes, according to Anarock Property Consultants.

Sales in Mumbai grew by 22% in 2019 amid the continued credit crunch and economic slowdown decreased recovery in housing sales in India’s top 7 cities.

The Macrotech Developers, a developer of the trump-tower in Mumbai, to Godrej Properties Ltd., operated by a billionaire family of Adi Godrej, are constructing more low-cost houses with a credit squeeze crushing demand for posh apartments. New homes have been up 21% in the seven largest cities in India, led by affordable apartments, highlighting higher demand in the segment.

“The decision by the developers to bridge the demand-supply gap was one of the main factors helping Mumbai to become the showstopper in 2019,” Anarock Chairperson Anuj Puri said. “In this affordable segment, the Region saw the highest supply which is an extraordinary thing for this industry.”

However, according to the data from Anarock, new housing sales have slowed down to 5%. In recent years, India’s real estate market has only recovered from repetitive blows, including cash ban, new regulations and tax structures, as its main lenders, non-bank financers began to collapse, faced yet another threat by a major credit crunch.

The credit crunch is now intensified and is exacerbated by an economic slowdown that has impacted demand for goods and services. According to Anarock, housing sales were 17.6% higher in 2018 in the top seven cities but this rebound has been stalled by the worsened economy.

“The ongoing liquidity crisis, the less than anticipated buyer sentiment and the vacillating GDP growth inevitably hamper the overall growth of housing in the second half of 2019,” Puri said.