Mumbai has over 2.26 lakhs unsold properties: Report

In 2013 the number of unsold inventory in Mumbai Metropolitan Region was at 1.42 lakh, the same has gone up to 2.23 lakh in the third quarter of 2018. While it is lower than last year where it stood at 2.26 lakh for the whole year of 2017. Of the total unsold inventory, the highest 67 per cent are in Mumbai, while, 16 per cent are in Navi Mumbai and the remaining 17 per cent in Thane. All this is part of a report by Anarock Property Consultants.

According to the report, Mumbai Metropolitan Region (MMR) has witnessed a huge supply addition in the past 5 years. Between 2013 to Q3 2018, the market has seen more than 0.5 million units launched across the region and distributed across different budget segments, ranging from affordable to ultra-luxury. MMR witnessed aggressive launches in 2013, 2014 and 2015. More than 60% of the 0.5 million units launched in MMR came in these 3 years. From 2016 onwards, with changing market dynamics, the developers restricted large-scale new inventory and focused more on off-loading the existing unsold stock.

The report further mentions that the projects launched in MMR have 54 per cent of homes that are priced below Rs 80 lakh. These include 28 per cent of homes that were priced below Rs 40 lakh, and between Rs 40-80 lakh 26 per cent of homes were launched. About 24 per cent of homes launched were between Rs 80 lakhs to 1.5 crore, 12 per cent homes were priced between Rs 1.5 to 2.5 crore, while 10 per cent homes were launched above Rs 2.5 crore.

Anuj Puri, Chairman - ANAROCK Property Consultants said, "In the process of scoping out MMR's new real estate growth corridors, this report clearly illustrates how the rising property prices in Greater Mumbai are leading to a natural housing demand progression towards the peripheral areas. While Mumbai's share in overall launches in MMR declined from 71 per cent in 2013 to 67 per cent in first three quarters of 2018, Navi Mumbai has witnessed an increase in share from 9-17 per cent. Due to the expansion of city limits from Greater Mumbai to the peripheries, more than 1.8 lakh units since 2013 have been launched in the western and central peripheral regions."

The report states that the average prices have gone up from Rs 9.600 per square feet to Rs 10.500 per square feet. However, last year it was at Rs 10.400, and in 2016 it was Rs 10,500. The report says that, In terms of average prices, Navi Mumbai is one of the most affordable markets in MMR. With supply ranging between 15-20% of the overall MMR supply, it has clocked the highest price appreciation during the past 5 years. The impact of DeMo, GST and RERA have been absorbed in the overall MMR market and the region has again started to gain momentum.

WHAT REPORT SAYS

City has witnessed a huge supply addition since 2013 

30-35% of MMR’s housing launches in peripheries 

54% Nearly supply priced below Rs 80 lakh 

37% of the unsold inventory MMR has in the top seven cities