India luxury housing market slows down

American real estate tycoon Donald Trump might want to rethink the timing of his entry to India.

Mr. Trump will be lending his name for a soon-to-be launched 60-story luxury apartment building in Mumbai. But sales of such existing homes in India have fallen in recent months.

An estimated 40% of luxury apartments coming up in India's financial center are unsold, say analysts and brokers. These apartments cost anywhere from $1 million to $12 million, and range from 5,000 square feet to 13,000 square feet in size.

Sales have slowed down in the last two to three months, thanks mainly to the steep prices. In December, the number of apartments registered in Mumbai – an indicator of sales – fell 50% from the same month the previous year, according to research from investment firm Prabhudas Liladhar Pvt. Ltd.

While this data includes non-luxury apartments as well, real estate brokers and consultants say luxury home sales have been similarly affected.

Source: Wall Street Journal