1. Real Estate slump: Unsold homes in Mumbai, Delhi-NCR & Bengaluru decline marginally

Real Estate slump: Unsold homes in Mumbai, Delhi-NCR & Bengaluru decline marginally

The unsold stock of residential units in top three real estate markets — Mumbai, Delhi & NCR and Bengaluru — is expected to have come off by just 7% in FY16, reports Shubhra Tandon in Mumbai.

By: | Mumbai | Updated: April 25, 2016 9:00 AM
Realty

The main reason for this is the limited supply — developers have launched fewer projects. (Reuters)

The unsold stock of residential units in top three real estate markets — Mumbai, Delhi & NCR and Bengaluru — is expected to have come off by just 7% in FY16, reports Shubhra Tandon in Mumbai. Industry estimates place the inventory could be around 6.5 lakh units, just a tad lower than the 7 lakh plus unsold units in FY15.

The main reason for this is the limited supply — developers have launched fewer projects. In 2015, the number of launched units fell by a sharp 62% year-on-year in Bengaluru, 37% in Mumbai and 14% in Delhi & NCR, according to Cushman and Wakefield. The trend is unlikely to have changed in financial year 2015-2016, several property experts opined. However, developers have begun to accept demand is weak, says Ashutosh Limaye, head of Research at JLL India adding they are becoming disciplined with regard to delivery timelines. “So, if 1,000 units are being planned, bookings are opened for just 300 units and the construction commences.

homes

If the response is good and builder is confident of delivering, construction for another lot of units begins,” Limaye explains. Builders are also launching more 1,2 and 3 bedroom apartments to fit more customers’ pockets, unwilling to risk inventories piling up.

Tags: Real Estate
  1. M
    mk
    Apr 25, 2016 at 3:34 am
    On ground reality if you see price have not came down and that is the reason for such decline, builders are still charging heavy, super builtup and many other charges still, If you see kolte patil rescent ad about a projet celentrio in Wagholi it says 3790 is per sq feet rate in pune, flat size are approx 1000 sq feet (super builtup) now how calculation comes to starting price 47 Lakh??? its the big question???
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