Residentia market in Mumbai will continue in inaction

Q: Inventory outrun will continue as stability holds the residential real estate sector.

Ramesk Polekar, Mumbai

10th August 2015

Real estate News in Mumbai

ncr real estate

mumbai real estate

residential real estate market

inventory pile up in mumbai

housing sale declined

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Replies (3)

Hope so......because the report shows that Mumbai, Bengaluru and Noida account for the largest unsold inventory, making up to 60% of the total unsold inventory across cities. Out of this, Ahmedabad has the largest 15% ready-to-move-in unsold inventory.

Govinda,

10th August 2015

Comment

Right Govinda,
It also indicates that the inventory pile up in almost doubled in the last 2 yrs, mainly in NCR and Mumbai. On the one hand sales in the real estate sector dropped by 18% over the last qtr, but on the other hand prices are likely to remain constant.

Miraniyatin, Mumbai

10th August 2015

Comment

I accept that Miran.......
In spite of the drop in sales, this qtr. witnesses key funding transaction in the sector. Warburg Pincus invested Rs.1800 crore in Piramal Realty. Lodha Developers raised Rs. 542 crore by selling non-convertible debentures to Kotak Realty Fund.

Diwakar Shetty,

10th August 2015

Yes, we all know. Forecasting the framework for the second quarter, a report says that new launches will be slow, mainly in Bengaluru, Chennai and Hyderabad owing to the Ashadh month from July 15 to August 15.

Miraniyatin, Mumbai

10th August 2015

Yes Miran.........and i think it might pick up in October when the festive season begins. Further cuts in home loan rates might also help in raise from the dead sales in the real estate market.

Diwakar Shetty,

10th August 2015

It is because that on a y-o-y basis, the unsold stock has increased by 18%. Aggregate sales across 8 cities in India declined by 4% on a y-o-y basis. This month's inventory, at the all India level stands at enormously 41, a rise of 24% in one year.

Miraniyatin, Mumbai

10th August 2015

Comment

True Miran,
As per report by Liases Foras, the average price across cities stands at Rs.6418/sq-ft. in the1st qtr. of 2015-16. It is showing a 0.4% rise annually but 1.2% drop from last quarter. It also indicates a significant drop in new unit launches.

Govinda,

10th August 2015