Two-third of the unsold housing inventory in Mumbai is priced above Rs 1 crore

Q: It indicates that the buying properties in Mumbai is beyond the reach of most of the city's prospective home buyers.

Shaunak Verdla, Mumbai

22nd September 2015

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Replies (5)

It is true. And if we marked against pan-India figures, the numbers are highly slopped towards the higher ticket sizes in Mumbai. Very few units in the affordable range were available from all these launches and mostly were in the suburban locations. Even if one looks at the overall inventory, there is very little stock Rs 65 lakh in the affordable range of and below in Mumbai's municipal limits.

Sunil Joshi, Mumbai

24th September 2015

Comment

However, to release the pressure from the buyers government needs to review the framework and consider measures.

Apart from reducing taxes, government needs to improve infrastructure and connectivity. Also creating more growth corridors with economic activity that will encourage buyers and not force people to reside in suburban locations too.

Preeti Kher, Delhi-NCR

24th September 2015

Comment

Hi everybody,
Earlier, we have to pay 30-35% as a premium and development charges to the civic authorities of the project cost but not now it has been increased over 300% in the past 3 yrs.

With land prices and development premiums that continue to move higher, ratio of houses priced above Rs. 1 crore range are expected to go up marginally in the near term launches.

Sankalp, Mumbai

22nd September 2015

Comment

But at this time people are looking for reduce in the size of apartments and undertake value engineering of construction cost to make sure more home buyers can afford houses in Mumbai. The average unit sizes in Mumbai have been the lowest among Indian cities.

Manilal Patel, Mumbai

22nd September 2015

Comment

Yes, over the past few yrs., developers have been reducing the average unit sizes to suit the budget of a majority of home buyers in the city. The reduction in average unit sizes has been the highest in Mumbai at 26.4% in the past 5 yrs.

Joseph Sebastian, Kolkata

22nd September 2015

Hey Joseph,
Developers are not only reducing the apartment sizes but also changing their polict to serve to the large section of consumers.

Manilal Patel, Mumbai

22nd September 2015

We all know that below Rs 1 crore is where majority of the demand is and would like to capture this attractive segment. But how many of us can do it within city limits, given the current land prices and development premiums that need to be paid upfront? That is why developers are also looking at places beyond Thane and Navi Mumbai where they can offer apartments in the affordable category.

Chintakpujara, Mumbai

22nd September 2015

As per the recent data it is found that there are about 33500 residential apartments in this category out of a total 44032 units. About 83% of the housing units that were launched in the 2nd qtr. ended June fall in this price range within Mumbai's municipal limits.

Sankalp, Mumbai

22nd September 2015

Comment

It is true. But at the same time the ratio has come down from 90% at the end of April due to some new launches in suburban locations. You can not ignore, it is still very high for a city where only a limited % of residents can afford ticket sizes of over Rs 1 crore.

Chintakpujara, Mumbai

22nd September 2015