The residential property market in Mumbai is popping in favor of purchasers with inventory levels rising and costs weakening. Residential property costs in some south and central Mumbai Places like Lower Parel, Mahalaxmi and Parel have declined nearly 10 percent over the previous 3 quarters with the rise within the variety of unsold homes and prospective buyers reluctant to exceed budgets amid a slump, says Property Consultancy
Developers are open to negotiation, particularly within the premium phase, reducing costs up to 25 percent for a sizeable direct payment. Costs in Navi Mumbai, Thane and therefore the peripheral suburbs of central and western urban center have either been stable or have trended marginally upward, says the advisor.
On the residential front, the increase in interest value and decline in web profits throughout 2013 can compel developers to lighten inventory load and deleverage their balance sheets. However demand is probably going to stay subdued over the initial a part of 2014 because the market continues to bottom out against the background of a sluggish economy. Just about 47,488 units were launched within the January-September period, a pointy 28 percent fall from a year ago. The distinction is even larger at 42 percent and 46 percent, when put next with a similar period in 2011 and 2010, severally.
It is kind of evident that developers are keeping new launches in restraint so as to bridge the availability and demand gap. Rising inventory levels are a point for belongings developers across the country, particularly in Mumbai, India’s costliest property market. Nearly 290,000 residential units area unit below construction within the Mumbai residential market whereas unsold inventory levels area unit near 130,000. The incontrovertible fact that the unsold inventory level within the Metropolitan Region is sort of 45 percent whereas that within the city Region (NCR) is 26 percent offers a perspective of the dire scenario of the Mumbai residential market, considering that the NCR has nearly double the amount of units below construction compared to Mumbai.
Unsold inventory constitutes units in prepared as well under-construction projects. For a few time currently, property brokers have highlighted delays in project deliveries with the economic slowdown geological process demand. The gap between costs of under-construction and prepared residences has widened to its highest and is the maximum amount as 100 percent in some instances owing to delays and uncertainty in approvals, with the exception of different reasons.