Mumbai Unsold Apartments Soared To 1.09 Lakh, Reason: Unaffordability
The number of unsold apartments in Mumbai has now reached 1.09 lakh units, which is a record of sorts in the realty sector and the real estate slowdown still continues. The reason: unaffordability, as homebuyers are finding it difficult to purchase as they feel the rates are still beyond their reach. Liases Foras, the real estate research firm which compiled the data, said that despite price cuts and incentives, buyers are not in a position to buy.
In addition, the Mumbai Metropolitan Region (MMR) saw the number of unsold apartments reach 2.60 lakh.
Most of these unsold houses are in the Western suburbs (49,462 units), followed by Central suburbs with 44,230 units and finally the Island city, which has 15,945 houses. These include houses of both the ready as well as under-construction projects.
CEO, Liases Foras said, the government talks of affordable housing but levies heavy taxes and premiums on realty sector. The entire burden is ultimately borne by the buyer.
The real estate sector has undergone lots of changes like RERA (Real Estate Regulatory Authority), demonetisation and GST, which has led to a slowdown in the overall construction scenario. Vice-chairperson, Nahar Group, said there is now positive sentiment in the market. Buyers are now taking a plunge and we expect good sales in the next few months.
The real estate industry in the past few years has been going through a recessionary phase. Builders raised realty prices to unaffordable levels, forcing many buyers to postpone their plans to purchase. In addition, the Reserve Bank of India (RBI) as a cautionary exercise laid down stringent lending norms. It also hiked interest rates on home loans, further upsetting homebuyers’ plans.
However, both the prices as well as the interest rates on home loans are coming down gradually and the industry is hoping that things will improve.
Source Link- https://www.hindustantimes.com/.