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Users' Sentiments For Mumbai Property Remained Negative In 2013
Total Articles: 54
The real estate in Mumbai has reached a saturation level, with investors not too keen to launch any new projects. The reason is clear. Mumbai properties have undergone a steep prices over last one year. As a result, the demand for the same has crumbled. The projects that have already been launched are not finding any buyers. Currently, the total vacant units that this city is burdened is around 1.3 lakhs. In 2014, this number is expected to continue, thus making developers keep on ruing over poor sales. The skyrocketing prices of apartments has made it difficult to afford a property in the city.
As per a report by Knight Frank, Mumbai property is really in poor condition, with the total number of unused inventories forming 45% part of total vacant inventories in the country. This is, indeed, a vary large number, giving both the developers as well as investors sleepless nights. In the first three quarters of 2013, .i.e. Jan-Sep, the rate of new launches of properties slumped down to 26%. Since 2010, the number of new launches has declined by 40%, in the residential sector.
The trends for the peripheral localities are a little bit encouraging, as the first three quartets saw 34% all-new launches in Dombivali, Kalwa, and other suburbs. But the situation is alarming in other parts of the city: in high-end localities like Goregaon, Andheri, Bandra, and several others, the number of launches this year was almost negligible. The property in Mumbai in these localities are already burdened under the influence of exodus of vacant inventories.
As the prices for most income groups have surpassed their affordability level, the buyers' negative sentiments are easy to understand. The absorption rate has sunk. As more than half of unsold residential units are those that come in 2 crore and above bracket, even the affluent class is under no position to make a purchase. In spite of the poor scenario, developers are in no mood to slash down the rates. On the other hand, they are coming up with other strategies to allure buyers. They are offering their clients with cash discounts and freebies. But such gimmicks haven't proved too beneficial.
As the property bubble has reached saturation in the city, prices are expected to correct themselves. Without the correction, there is no possibility that interest of the users in buying property shall revive. This is a big challenge ahead and it will take more than 27 months to get rid of the unused properties.
Makaan.com is a property search website where users can find 1, 2, 3 BHK flats for sale in Mumbai to buy, sell, or rent. Both commercial and residential Mumbai property, in the form of apartments, villas, shops, offices, and warehouses, is available for searching on the site.
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