For a city bursting at its seams, India’s most expensive real estate market continues to be down with little action on both home and office property fronts. Low demand has caused a huge pile-up of unsold homes.
According to PropEquity, the stock of unsold flats was 2.15 lakh units at the end of November, about 12 times the sales of the preceding three months.
Another agency, Cushman & Wakefield says that new property launches were just 48 (totalling 15,735 residential units) in 2015 compared to 86 (24,965 units) the previous year.
Indeed, prices have fallen but not enough to boost demand and sales, it appears.
The average base selling price of mid-segment projects has fallen by as much as one-fifth in Goregaon but in other suburbs such as Mulund, it has actually risen 7 per cent, according to a Cushman & Wakefield report released on January 4.
Office space fares better, though not by much in 2015. According to property consultancy CBRE, while “capital values inched up across select micro-markets, driven by an increase in investment appetite.demand in the Central Business District (CBD) of Nariman Point, Fort and Cuffe Parade remained subdued over the previous quarter”.
Thus, rental values remained unchanged in many areas, including Lower Parel, Prabhadevi and Bandra Kurla complex.That said, prospects for commercial real estate may yet brighten up in 2016 as start-up and e-commerce firms, which boosted demand in Bengaluru and Gurgaon, hit Mumbai.
Early this month, Amazon leased a 30,000 square foot space office.