Property sales across the Mumbai Metropolitan Region (MMR) have slumped by more than half. In the first quarter of 2012,absorption of residential property has fallen to 11,473 units compared to 27,676 units in the corresponding period last year,according to a recent report by property consultants PropEquity.
The total residential supply between January and March 2012 was 89,461 units,which means that less than 13 per cent of the total stock was absorbed.
Sales have slackened the most in Navi Mumbai,which has registered a 65 per cent dip between January and March 2012 compared to the same time last year.
Over the past couple of years,the region has been riding on a realty boom in the wake of the proposed international airport,leading to extreme speculative pricing in areas in and around the airport site.
Sales within the municipal limits of Mumbai have nosedived by 57 per cent,while in Thane district the absorption has dipped by 53 per cent.
Samir Jasuja,chief executive officer of PropEquity,said,In the coming quarter,there would be a strong pressure on many micro-markets and we expect inventory overhang to increase and absorption could continue to slow down. If the current situation persists,a much-needed price correction in the range of five to 20 per cent could be on the anvil,he said.
On a national level,rates in Delhi-NCR,too,have plunged by more than half with Gurgaon being responsible for most of the drop while Bangalore has registered a comparatively lesser dip,18 per cent,in the first quarter compared to same period last year.
Jasuja said the price correction will not affect markets such as Bangalore where developers have managed to ease their huge inventory pile-up due to a healthy end user demand as opposed investor-driven markets such as Mumbai and NCR .