Mumbai Metropolitan Region (MMR) has the maximum number of unsold inventory from previous years when compared with the top six real estate markets in India, showing that the demand from property buyers has not picked up as much in the most crucial real estate markets in India.
The region is having the poorest record of selling residential units against what it is launching year after year.
The city launched around 2.3 lakh residential units between 2012 and 2013, and has launched over 35,500 units more till June 2014, taking the total tally of launched units to nearly 2.7 lakh units in the last two and a half years. However, the demand and supply gap has led to a pile-up of 2,13,742 unsold units in maximum city as at the end of June 2014, according to the latest ‘India Real Estate Outlook’ report of global property consultants Knight Frank.
In July 2012, Knight Frank had put the number of unsold units in Mumbai at 80,000 units.
In another trend, Knight Frank says that the ratio of ready possession projects is increasing in this unsold stock.
Knight Frank India’s chief economist and director (research) Samantak Das said, “While the inventory two years ago was mainly on account of under-construction projects, the share of ready-possession projects is rising this time around.”
Knight Frank’s report says that the financial capital of the country has not just the worst sales velocity in the residential segment, but also a higher age of unsold inventory in terms of quarters.
The time period taken to liquidate the unsold inventory at the sales velocity of last eight quarters or the quarter-to-sales ratio for the MMR has more than doubled in the
last 10 quarters.