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Mumbai's property market witnesses marginal growth
DNA  |  February 15, 2019

Sudhir Suryawanshi

The survey conducted by Mumbai based real estate research firm Liases Foras states 9 per cent rise in Mumbai property sale, while it has declined by two per cent in Mumbai Metropolitan region. The MMR regions includes the Mumbai and it's peripheral locations like Thane, Navi Mumbai, Kalyan, Dombivali and Panvel."In 2017, 16,532 properties were sold in MMR while 5854 in Mumbai alone. While in 2018, 17,946 properties were sold in MMR region, and 5481 in Mumbai," stated the report.

 

The report further revealed that the unsold inventory has gone up marginally by 1 per cent in MMR in year to year analysis. While in Mumbai, the unsold housing stock has gone down by 3 per cent. "In 2017, in MMR the unsold inventory was 2.66 lakh and in 2018, it went up 2.69 lakh in this same region . While in Mumbai, the unsold stock in 2017 was 1.09 lakh and in 2018, it went down to 1.05 lakh," reads the report. It further mentioned that, the new housing project launches have registered the positive growth. The year 2018 recorded 29 per cent growth in new launches in Mumbai while 6 per cent in MMR.

 

Pankaj Kapoor, MD at Laises Foras said that the property market is witnessing the marginally positive growth. He said that the realty prices will not rise up drastically now. "The current market is end users driven. The investors are no more in realty market now. Therefore, it has been witnessing the steady and slow growth. Besides, even the current property prices are so high that the people are unable to afford the houses in Mumbai city. The majority of sale is taking place in MMR particularly in Kalyan, Panvel, Ulwe locations where people can buy the house at Rs 50 lakh to Rs 1 crore bracket. Most of these sale are reportedly happening in the ready to occupy apartments. In under construction projects, the 12 per cent GST is the main hindrance for the buyers," said Kapoor.

 

He added that, the developers are under huge debt, therefore in coming days the desperate developers may also bring down the prices to dispose of their pilled up stock. "The profit margin of the developers are reduced from 35 per cent to 10 per cent to 20 per cent. It varies project to project and location to locations," Kapoor added.

 

Prakash Bhaviskar, president of Maharashtra Chamber of Housing Industry, Navi Mumbai said that, every sector has to go through a difficult phase. "However, we are confident that this bad time will also get over soon. Government also need to help the industry in tough times. They have to slash the exorbitant taxes making buying house as an affordable to buyers," said Bhaviskar.

 

IN-DEPTH

 

In 2017, 16,532 properties were sold in MMR while 5854 in Mumbai alone. While in 2018, 17,946 properties were sold in MMR region, and 5481 in Mumbai.