Housing market stagnates, unsold flats still at 35,000

The real estate market appears to be stagnating, with the number of unsold flats in the city still at 35,000 units.

The real estate market appears to be stagnating, with the number of unsold flats in the city still at 35,000 units.

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The number of unsold flats was exactly the same in April. In January, the figure stood at 33,600 units.

These are the findings of a survey on the residential real estate market conducted by Liases Foras, the real estate research firm, which blamed exorbitant rates for the unsold stock. “Few can afford flats when realty rates are so high,” said Pankaj Kapoor, CEO, Liases Foras. This unsold inventory includes both readymade flats as well as those being constructed.

However, the survey found that the number of unsold apartments in the Mumbai Metropolitan Region (MMR) dropped to 1.08 lakh apartments from 1.13 lakh in April. The reason - there have been sales in the far-flung suburbs of Nalasopara, Vasai, Naigaon and Virar.

“The rates are low compared to Mumbai,” said Kapoor. MMR includes regions such as Thane, Navi Mumbai and Raigad apart from Mumbai.

However, builders continue to dispute the figures. “It’s impossible that so many flats are being hoarded,” said Sukhraj Nahar, chairman, Nahar Group.

Sunil Mantri, chairman, Indian Merchants Chamber (real estate committee) called the report unrealistic, saying, “The market is going through liquidity crises and we need to sell to fund our projects,” said Mantri.

The real estate industry in the last year has been going through crises. Builders raised prices to a record high forcing many buyers to postpone their purchase plans.

In addition to this, the Reserve Bank of India laid down stringent lending conditions and hiked interest rates on home loans.