Low sentiments deepen slowdown in realty market in Mumbai

Homebuyers are postponing their plan to buy a house as they are not sure of date of possession

The real estate sector continues to be in slowdown mode, given the subdued optimism of stakeholders, according to a survey.

More than 1 lakh units remain unsold in Mumbai.

The Real Estate Sentiment Index survey was conducted by Knight Frank, an international property consultant, along with the Federation of Indian Chambers of Commerce and Industry (FICCI) and the National Real Estate Development Council.

According to Samantak Das, chief economist and national director (research), Knight Frank India, business sentiments in the recent history of real estate have hit market sentiment. “Builders are taking more time to adapt to new reforms such as the Real Estate (Regulation and Development) Act and the Goods and Service Tax (GST). This has caused a decrease in launches and sales,” said Das. “Since there are no sales happening, the banks and non-bank financial companies still do not have the confidence (to invest) in the market,” he added.

On the other, homebuyers are postponing their plan to buy a house as they are not sure of date of possession.

The objective of the survey was to capture perceptions and expectations of industry leaders and gauge the mood of the industry. In the Mumbai Metropolitan Region,  2.67 lakh houses remain unsold, of which 1 lakh are in Mumbai.And the downhill slide is likely to get worse in next six months, said majority of the stakeholders felt.

Commenting on the survey, builders pointed out that they are taking time to adopt a new regime. “We are adopting ourselves to the new rules and acts. As RERA (Real Estate (Regulation and Development) Act mandates disclosures, we are being cautious,” said Bhavesh Sanghrajka, chairman and manging director of Shraddha Lifescapes.