Mumbai has 1,03 lakh unsold apartments; MMR has 3.26 lakh

X : @Journo_007

Mumbai

The real estate sector continues to face a tough time as Mumbai currently has a staggering number of 1,03,208 unsold apartments.

Currently an average of 3682 houses are being sold monthly which means that it will take 23 months to clear this unsold inventory.

The MMR region which includes places like Navi Mumbai, Thane and Raigad apart from Mumbai also has an unsold inventory of 3,26,397 units. Here it will take at least 26 months to clear the inventory given that approximately 11,016 units are sold monthly.

This is according to the study conducted by Liases Foras, the real estate research firm who described the situation is stable. “There may be about a lakh apartments unsold in Mumbai but the fact remains is that sales are also taking place. There is nothing to panic per se” said Pankaj Kapoor, Managing Director, Liases Foras.

CREDAI-MCHI, the leading association of real estate builders contended the large number of unsold flats due to large scale construction activity taking place across Mumbai and MMR. “We have a large supply coming in and getting sold too. This number accounts for both ready as well as under-construction apartments,” said Rajesh Prajapati, PR Committee Chairman, CREDAI-MCHI. He said that construction activity is currently going in full swing and we will be seeing huge stock of apartments in coming years.

The real estate sector in Mumbai has witnessed a massive slowdown in the last few years. The Covid-19 pandemic only aggravated the matters resulting in virtual paralysis of the sector. In 2021 based on the Deepak Parikh committee recommendation appointed for revival of the realty sector, the then Uddhav Thackeray led state government decided to reduce premiums by 50 %.  The construction premium in Mumbai is the highest in India and amounts to one-third of the cost of the project.

The result….Builders paid a record premium to the tune of ₹13,543 crore for the construction of 150 million square feet area in 2021.

Bhavesh Sanghrajka, Managing Director, Shraddha Lifescapes, which is currently undertaking three projects in Mumbai said that buyers are spoilt for choices. “The realty prices have stabilised in the last few years and buyers are currently getting the best deal,” said Sanghrajka. He ruled out any price cuts. “There is no way we can cut prices as everything including premiums, raw materials as well as labour costs have gone through the roof and we are operating at a very thin margins,” he added.