With the realty rates hovering at exorbitant levels and sales dropping drastically, the number of unsold flats in the city has now reached to 33,600 units, said a study conducted by a real estate research firm.
This shows an increase in the unsold inventory, which stood at 32,000 just three months ago.
The study, conducted by Liases Foras, indicated that the realty market is at the all time low.
"The realty prices have reached unaffordable levels which has prompted many buyers to postpone their buying plans," said Pankaj Kapoor, CEO, Liases Foras.
Another major finding was that the number of unsold apartments in the Mumbai Metropolitan Region (MMR), which includes Thane, Navi Mumbai and Raigad apart from Mumbai are 95,000 units. "The same trend is visible all across where prices have risen exorbitantly," he added.
Kapoor predicts that prices will come down in the next few months.
However, builders disagree with the figures calling them exaggerated.
"These numbers are impractical as no builder can sustain himself with this kind of unsold inventory," said Sunil Mantri, Chairman, Indian Merchants Chamber (Real Estate Committee).
Babulal Verma, chairman and managing director, Omkar Realtors and Developers Pvt Ltd agrees with Mantri. "Sales are taking place but at a slower pace. The city does not have these many unsold flats at all," said Verma.
In the last one year, 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 thus forcing many to put off their buying plans.
Housing activists, however, agree with the study and blame the greed of builders for this phenomenon.
"Builders are just hoarding the stock expecting to make a killing with high prices," said noted housing activist Advocate Vinod Sampat.
"Genuine buyers are the ultimate sufferers of this greed," Sampat added.