The real estate sector in continues to be in slowdown mode as in the last three months, the sales of new apartments in Mumbai clocked just 2,411 — the lowest in recent years. This is down from 3,920 – the sales figures for the first quarter (January-March).
The scene is similar in the Mumbai Metropolitan Region (MMR) that includes Thane, Navi Mumbai and Raigad apart from Mumbai where the sales (April-June) numbered 9,083 – down from 10,325 during the previous quarter (January-March).
This was the outcome of the survey conducted by Liases Foras, the leading real estate research firm which indicated a slump in the market. According to Pankaj Kapoor, managing director, Liases Foras, exorbitant real estate rates was a major reason for the lack of sales. “The prices are simply unaffordable,” said Kapoor.
Builders also agree that sales are down but blame a variety of factors for the phenomenon. “The overall environment is bad. The GDP growth rate has come down, the dollar rate has increased and even loans are hard to get,” said Sunil Mantri, vice-president, National Real Estate Development Council.
In the last three years, realty prices have risen to a record high, dissuading buyers from purchasing property.
In addition, the Reserve Bank of India has tightened lending norms and also hiked interest rates on home loans forcing many to put off their buying plans.
Real estate experts say buyers are playing the waiting game. “The market is completely down and buyers are waiting for prices to reduce,” said Prakkash Nichanii, CEO, Anchor Property Consultants, a leading real estate brokerage firm.