Unsold flats in city rise to 39,295 in Jan

In a clear sign that people are unwilling to pay the exorbitant amounts developers demand for apartments, the number of unsold flats in Mumbai has risen to 39,295 units in January, from 37,800 in October 2012. Naresh Kamath reports.

In a clear sign that people are unwilling to pay the exorbitant amounts developers demand for apartments, the number of unsold flats in Mumbai has risen to 39,295 units in January, from 37,800 in October 2012.

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The figures, based on a survey, were released on Sunday by Liases Foras, a private real estate research firm. “Current property prices are very high and unaffordable,” said Pankaj Kapoor, CEO, Liases Foras.

The trend is reflected in Mumbai Metropolitan Region (MMR) too, where the number of unsold flats rose to 1.19 lakh units from 1.11 lakh in October. MMR includes Thane, Navi Mumbai and Raigad, apart from Mumbai. “There have been a spate of new launches over the past three months, and around 11,000 units have been added,” Kapoor said.

The unsold units include ready and under-construction flats.

Builders claim the numbers are exaggerated. “There is no way that builders can survive keeping so many flats vacant,” said Paras Gundecha, president, Maharashtra Chambers of Housing Industry.

Tejas Vyas, director, Oyster Group, agreed: “It is difficult to hoard so many units where liquidity is a major issue.”