Death knells for Mumbai real estate
With a little over one lakh residential flats lying unsold in Mumbai, an inventory, according to experts, which will take more than three years to clear as not much of it is available for immediate possession, the Mumbai real estate horizon looks grim.
According to data from property research firm Knight Frank, sale of Mumbai apartments in the financial year 2012 dropped by more than 60 percent from its peak in 2007 and 35 percent from 2011. Of the market average of 80,000 units, only 45,000 apartments were sold in the Mumbai Metropolitan region (MMR) during 2011-2012.
Scenario is not looking good for investors as well as interests rates are high, regulatory approvals are stuck and developers are not being able to deliver the returns they had earlier promised to PE investors.
Even resale homes – usually cheaper than new property – aren’t selling for want of buyers. Buyers are expecting a decline in prices and concerned with lack of confidence in the developer’s ability to deliver. Lending in Mumbai has come down and prices have shot to unsustainable levels.
The current scenario essentially means no affordable homes exist in Mumbai and its immediate closest satellite towns of Navi Mumbai and Thane.
Knight Frank, Mumbai, Mumbai Metropolitan Region (MMR), Mumbai real estate, Mumbai realty, Mumbai realty market, Mumbai realty sales, Navi Mumbai, PE investors, Real estate in India, Real estate in Mumbai, Real Estate India, Real Estate Sector, Realty News, resale homes, Thane
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