The weighted average cost of a house in Greater Mumbai has just soared to an all-time high of Rs 3 crore even as the unsold inventory pile-up has shot up to 53,856 units.
Of this, merely 2,953 units have been sold in the last quarter of July-September 2014. The current unsold inventory in under-construction and new residential projects will take as many as 55 months to get absorbed at the current slow pace of sales, says a report released by Liases Foras, a real estate consultancy firm.
The inventory and price scene in the entire Mumbai Metropolitan Region (MMR) is no better. The region is saddled with 1.48 lakh unsold apartments even as the average price is at an high of Rs 1.34 crore.
The silver lining is the fact that the price growth itself has retarded, with several developers introducing new launches at rates lower than the prevailing ones in that area.
Greater Mumbai has seen an additional 3589 units being added to its existing residential stock through new launches. Some of the major ones in the last quarter are projects by Aristo developers in Mulund, Omkar Realty and Acme developer in Andheri.
“There has been a time correction, if not price correction, if one looks at the fact that the increase in MMR residential real estate prices in the last quarter is a marginal 1 per cent. Whenever sales are taking off, developers are launching their projects at lower than market rates. However, the overall health of the market is not improving. Even if there is a 20 per cent price correction in Mumbai, the inventory will get cleared within 15 to 20 months,” said Pankaj Kapoor from Liases Foras.
Kapoor added that the market is veering away from investors to meeting end-user demand, especially in MMR, as against markets such as National Capital Region where investor presence is still high.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines