In Mumbai region it’s hard to get buyers for Rs 2,430 crore of ready flats
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The percentage of ready to move yet unsold residential property is more than 3.5 per cent out of total unsold residential inventory in the MMR (Mumbai Metropolitan Region) and Navi Mumbai, as per the latest report released by CREDAI (Confederation of Real Estate Developers Association of India) and JLL India. However; the total estimated value of ready to move residential inventory is more than Rs. 2,430 crore. From last 30 months, inventory level is continuously increasing in Mumbai Metropolitan Region. Housing inventory level is increasing to record level and it’s just due to the weak sales and unaffordable property prices even than when real estate developers are offering lucrative discount and schemes such as; big discounts, foreign tours, free cars, free ACs, free parking space and more.
In Navi Mumbai, the percentage of completed flats and apartments, which are still waiting for owners or buyers are at 8.13 per cent of the total unsold residential inventory. In Thane and Mumbai, 1.33 per cent and 1.10 per cent of the total unsold residential apartments or flats are ready for possession. According to report, these inventories are overhang in Mumbai Metropolitan Region including Navi Mumbai and Thane from the duration of more than 30 months. There are total 3.35 per cent or 2,600 residential units are available as ready to move inventory out of total 77,460 residential units, which are available in Mumbai, Thane and Navi Mumbai. Currently there are total 5,311 residential units available as unsold inventory which have price more than Rs. 5 crore and about 17,000 residential units have price between Rs. 2 and Rs. 5 crore, however; more than 35,700 residential units have price between Rs. 65 lakh and Rs. 2 crore whereas; 19,500 residential units are priced below Rs. 65 lakh.
According to Ashutosh Limaye, National director of research at JLL India, “For the real estate market of Mumbai there are slow absorption rate because currently buyers are holding their purchasing decisions as they are expecting little more correction in the weak real estate market. It’s just representation that how buyers are showing interest in the completed residential projects. These days real estate market is becoming the end user driven and investors don’t have longer funds to invest in real estate market to get the high rate of return”. The reason behind slow sale of residential unit can be the more price of these 2,600 residential units as they have price more than Rs 1 crore, which is unaffordable for normal Mumbaikars as most are from middle class. However; real estate developers are thinking that they are offering affordable and reasonable ticket sizes and this price is justified as per market conditions.
Suburbs from Goregaon to Vile Parle have more than 205 completed ready for possession unsold units which have price more than Rs. 2 crore. However; the areas where residential units have price below than Rs. 65 lakh are emerging as one of the most affordable region in Navi Mumbai and these areas are; Dronagiri, Karanjade and more which are far away from suburbs off Ghodbunder Road in Thane. In present, some of the real estate developers are already accepts the demand of consumers. Now it’s time when real estate builders should realize that buyers are ready to buy residential projects, but developers should stick to their construction deadlines and they have to complete whole project at correct time.
Even after completion, real estate developers are taking at-least six month of time to sell their entire inventories. As per recent data there are 18 per cent buyers are investing money in starting of project however; 27 per cent buyers are investing money in real estate market near the completion period.
