108K units remain unsold in Mumbai
The real estate sector continues to stagnate in Mumbai as a staggering 108,929 housing units remain unsold in the city. From January to March, 6,780 housing units were launched in Mumbai, of which 5,775 houses were sold. As an average of 1,908 housing units is sold every month in Mumbai, it will tak
Published -
May 1, 2021 2:49 AM
The real estate sector continues to stagnate in Mumbai as a staggering 108,929 housing units remain unsold in the city. From January to March, 6,780 housing units were launched in Mumbai, of which 5,775 houses were sold. As an average of 1,908 housing units is sold every month in Mumbai, it will take at least 57 months to sell its unsold inventory, according to a study conducted by real estate research firm Liases Foras, which pointed out the realty sector’s grim situation, especially amid the second wave of Covid-19 lockdown, where the entire sector has been paralysed. In any realty market, the ideal inventory should not be above 15-20 months. According to Pankaj Kapoor, managing director, Liases Foras, this huge inventory is a cause of worry. “The second wave of Covid-19 will only make things difficult for the real estate sector as the sales volume will decrease significantly,” said Kapoor, adding, “In addition, the state government has made things more difficult by withdrawing the stamp duty cut in March-end. The stamp duty cut had helped drive the sales in the past few months,” he added. The Builders’ Association of India (BAI) said both slowdown and government policies have caused havoc in the realty sector, resulting in the piling up of such a huge inventory. The Mumbai Metropolitan Region (MMR) region, which along with Mumbai includes Navi Mumbai, Thane and Raigad, also has an unsold inventory of 286,992 units. It will take at least 48 months to clear MMR’s inventory, given that approximately 6,000 units are sold monthly.
Tags : News/Views Mumbai Real Estate Housing units units unsold The Builders’ Association of India (BAI)