128% rise in new projects in Mumbai, but realty sales stay stagnant

Sales remained low, with 32,412 houses being sold this year compared to 32,077 units last year despite 10-15 % discount on prices.

The real estate sector continues to face a slowdown this year as sales in the Mumbai Metropolitan Region (MMR) remain stagnant despite an increase in new launches and drop in prices.

According to a Knight Frank report, 35,974 housing units were launched this year compared to 15,763 units last year. (HT File Photo/Used for representational purpose)

In the past six months (January to June 2018) there was an increase in new launches by 128% compared to the same period last year (January to June 2017).

According to a report by Knight Frank, a real estate consulting firm, 35,974 housing units were launched this year compared to 15,763 units last year. However, sales remained almost stagnant as 32,412 houses were sold this year compared to 32,077 units in 2017. This was despite the 10-15% discount on prices being offered to buyers.

Samantak Das, chief economist, and national director – research, Knight Frank, believes that homebuyers still do not have confidence in the market. “For decades, homebuyers were at the mercy of builders. Though both the Maharashtra Real Estate Regulatory Authority (MahaRERA) and Goods and Services Tax (GST) have brought transparency, it will take time for the buyer to start purchasing,” he said. Over the past few years, the real estate sector has been going through a rough phase with builders jacking up prices and banks hiking interest rates on home loans and imposing stringent conditions. However, now with a fall in prices and better interest rates, developers are hopeful the sector will recover soon.