Mumbai: No home-buyers, realty sector stays sluggish

Homes stay unaffordable and units, unsold, in Mumbai and the Mumbai Metropolitan Region, as the real estate sector slogs through a persistant slowdown.

Homes stay unaffordable and units, unsold, in Mumbai and the Mumbai Metropolitan Region, as the real estate sector slogs through a persistant slowdown.

Mumbai-skyline

The number of unsold inventory went up by 24% in Mumbai, that is, 65,037 units remain unsold till date.

This is a record of sorts for the realty sector, experts in the field said.

The situation is no better in the Mumbai Metropolitan Region (MMR) — which includes Thane, Navi Mumbai and Raigad, apart from Mumbai — where the number of unsold units have jumped to 1.76 lakh units. This is a 20 % increase compared to last year.

The unsold units include both ready-made and under-construction projects.

Liases Foras, the real estate research firm that compiled this data said the figures indicate a massive knot in the realty market.

“The buyer cannot purchase as prices are high and builders are not ready to introduce sharp cuts in prices. Things are just not moving,” said Pankaj Kapoor, the CEO of Liases Foras.

“The government’s policies only aggravate the situation, with high taxes and annual increases in the ready reckoner rates,” Kapoor added.

But, builders don’t agree with the data, saying they cannot afford to hoard homes right now.

“Builders are negotiating prices with buyers, as they need the funds too. No builder can afford to hoard houses,” said Rajesh Vardhan, managing director, the Vardhman Group.

The real estate industry has been in a rough phase the past few years.

Builders raised realty prices to exorbitant levels, forcing many buyers to postpone purchase plans.

In addition, the Reserve Bank of India laid down stringent lending norms and have hiked interests on home loans.

There have also been fewer launches.