Few buyers for exorbitant new flats in South Mumbai
The average price of the new apartments of South India has risen up to Rs. 7.5 Crore which might lead to the inventory bundle-up that might take about eight years to get sold.
South Mumbai, one of the most costly regions of India, South Mumbai just sold about 1,250 new residential apartments in the last one year. The cost of these apartments seems to have driven off many high end buyers as well even during the residential rates as well as commercial rates had fallen. This economic fall was because of the shift of companies as well as residents to the central region of Mumbai and other commercial districts such as the Bandra Kurla Complex and areas adjacent to it. The economic cut down in the past years has also affected it adversely as certain buyers thought of waiting patiently until the next economic year. At the present rate, the existing stock of the market will be absorbed within 105 months according to the data survey research by Liases Foras, real estate research agency.
The high priced residential projects of this region include, Sasen at Napean Sea Road and Palais Royale in Lower Parel. Here, apartment of 8,000 to 15,000 square feet or more has the starting price of Rs 75 crore and goes upto Rs. 100 crore or beyond. The agency’s data says that both of these inflated projects have their maximum stocks unsold. Although the projects were launched back in 2008, most of the unit with a price more than Rs. 30 crore is unsold. The unsold projects include Razzak Heavens by Orbit, Orchid Turf by D.B Realty projects in Mahalaxmi which was launched back in 2007 and Monte Metro by Hubtown.
The apartments in the Navi Mumbai region and verge of central suburban regions beyond Thane have more affordable and reasonable housing projects. These apartments are relatively moderate in size than the super-luxurious ones in the southern tip of Mumbai. Former President of Maharashtra Chamber of Housing Industry and a Builder, Paras Gundecha says that the small apartments are in high demand as they are quite reasonable and located in the suburbs.
SOURCE: Indian Express
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