As Costs Skyrocket, Few Takers For Plush New Flats In South Mumbai
South Mumbai is facing few buyers for plush apartments and expected time to sell the piled up property is more than 8 years. Just 1,250 residential units are sold in this area, which is once known as most expensive area in India.
The case is similar in other areas of Mumbai like Bandra – Kurla complex, Mahalakshmi and adjoining areas. The major reasons for souring in property purchase are shifting of businesses to central Mumbai and hike in property prices. There are more than 43,000 units unsold since 2008 and expected time for absorption of this entire property is more than 105 months. This is an average period but the guess may go wrong as the realtors lost all hopes from the market.
The highest priced properties like Palais Royale in Lower Parel and Sesen at Napean Sea Road where the constructed area of each apartment is 8,000 – 15000 Square feet costing Rs.75 crore to Rs.100 crore respectively are still laying unsold. The company records suggest almost all the property in unsold category. The property was launched in 2008 still company struggling to recover the investment. The DB Realty’s Orchid turf in Mahalakshmi, Orbit’s Razzak Heavens and Hubtown’s Monte Metro both in Napean Sea Road all launched more than 5 years ago are still keeping fingers crossed to sell properties each worth Rs.30 crore.
The emerging residential properties in the central Mumbai, Navi Mumbai and suburbs beyond Thane have good sales. Here the pricing of plots and flats are relatively reasonable. Looks like people are satisfied with the smaller properties because healthy absorption is found for smaller apartments. “The overpriced properties like villas and duplex apartments are becoming unaffordable even to high-end buyers,” stated by Paras Gundecha, former president of Maharashtra Chamber of Housing Industry and builder.
Most of ultra modern and luxury properties launched between 2008 and 2010 in South Mumbai are still unsold. Major projects belong to reputed builders like Lodha group, Indiabulls, Orbit Corporation, and DB Realty. The offers were given to direct walk in villas when the response noticed was extremely poor for raw possession. These luxury projects are failed to attract buyers though the amenities include lifestyle facilities and triplexes with sundecks.
Article Source : The Indian Express
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