90% Mumbai properties unsold despite low loan rates

Despite home loan rates being at record lows and stamp duty cuts to encourage sales, 90 per cent of inventory in south-central Mumbai, one of the biggest markets, remains unsold, a report said on Monday.

There are 10,700 housing units currently available for sale in this region, which was formerly the mill land and hence created huge opportunities for development, the report by Anarock Group, a real estate consultancy firm, said.

Of the total available stock, a maximum of 29 per cent availability is in homes sized 1,500-2,000 sq. ft. carpet area, followed by 23 per cent each in sizes 1,000-1,500 sq. ft. and 2,000-3,000 sq. ft, the report said.

Bigger properties sized 3,000-4,000 sq. ft and over 4,000 sq. ft. area have least available stock of 5 per cent and 2 per cent, respectively, it said.

Approximately 25,660 units have been launched between 2013 till Q3 2021 in South-Central micro-markets including Worli, Prabhadevi, Mahalaxmi, Tardeo and Lower Parel, it said.

In the last year (Q4 2020-Q3 2021), 1,910 units have been sold in South-Central Mumbai – at least 86 per cent more than in the corresponding period a year ago, it said.

The high net clientele, which typically invests in the high-value homes in the area, was the least affected by the pandemic and the buyers largely scouted for ready homes or those nearing completion, the report said.

The broader Mumbai Metropolitan Region trails the south-central Mumbai subset when it comes to the sale of inventory, with 8 per cent of units sold as against 10 per cent.

“Despite seeing maximum new supply among all top 7 cities in this period, MMR also shed at least 8 per cent of its unsold stock – from 2,08,250 units as on Q3 2020-end to nearly 1,92,050 units as on Q3 2021-end,” the firm's chairman Anuj Puri said.