Mumbai witnesses surplus new launches
Mumbai has witnessed new launches of around 3,600 units in the recent April-June quarter which is more than twice the number of 1,700 housing units launched in January-March, said Abhishek Kiran Gupta and Gagan Agrawal of Bank of America Merrill Lynch.
The Mumbai real estate is lagging behind for past one year owing to which new launches and sales have been awful.
More number of launches but very less sales have resulted in a big number of housing units left in inventory. Around 80,000 housing units, or 37% of the total residential supply under construction, remain unsold.
According to Knight Frank India, a global real estate firm, this huge stock may take two years to get sold if the prevailing sluggish market continues. Price correction appears aloof as developers are reluctant to clear inventories by selling at lower prices.
But if demand has to increase, then it is necessary to correct prices by 10%-15%, said Gupta and Agarwal.
To read more real estate news:
Mumbai sales market stagnates in June
Source: DNA India
Bank of America Merrill Lynch, Construction, Demand, Developers, Housing units, Knight Frank India, lower prices, Mumbai, Mumbai real estate, new launches, Sales
