Mumbai’s real estate market continues to be in slowdown mode with the number of unsold apartments rising to 80,052 units now from 72,967 three months back. This includes both homes ready to occupy and those under construction.
The Mumbai Metropolitan Region (MMR) was worse off with 2.10 lakh unsold houses from 1.92 lakh three months back.
The reason — exorbitant realty prices.
Pankaj Kapoor, CEO of Liases Foras, the real estate research firm which compiled the data, said, “The current price levels are not fitting in the budget of a majority of home buyers.” For example, property in Mahalaxmi is priced at Rs45,000 per square feet (psf), in Andheri (W) is priced in the range of Rs16,000- Rs22,000 psf, and in Goregaon in the range of Rs13,000-Rs15,000 psf. Kapoor also blamed the Government for the impasse. “The heavy taxes and premiums have only reduced the scope of builders to reduce the prices,” he added.
Builders have described the figures as exaggerated. “Cur rently builders need money and hence cannot afford to hoard such a huge inventory,” said Bhavesh Sanghrajka, Chair man and Managing Director, Shraddha Lifescapes.
The real estate industry in the last few years has been going through a recessionary phase. Builders raised realty prices to levels that forced many buyers to postpone purchase plans. In addition, the Reserve Bank of India (RBI) as a cautionary exercise laid down stringent lending norms as well as hiked interest rates on home loans.