According to a recent survey unsold inventory in Mumbai 2020 , released by Liases Foras and Proptiger.com, the number of unsold stocks in Mumbai reached a harsh reality checkpoint of 84,915 units, against 80,426 unsold units registered just three months ago.
In the Mumbai Metropolitan Region (MMR), which includes Mumbai, Thane, Navi Mumbai and Raigad, the unsold inventory index is now at 2.93 lakh homes and counting, against 2.09 lakh unsold units built a quarter ago, these statistical data were computed until July 2019.
Of these, more than 1.41 lakh units (more than 46% of the property) cost up to rupees 45 lakh. Proptiger.com is a real estate portal owned by Elara Technologies Pte Ltd, which also has other real estate portals such as Housing.com, Makaan.com and FastFox.com, while Liases Foras is the only non-brokerage property research company in the India.
In a city like mumbai unsold inventories is so high in 2020?
Where every square meter of space is literally golden, there are cases where most people in the middle class (almost 90%) have spent their entire lives trying to buy a single house.
The middle class community is one that literally struggles day after day to survive and mainly to buy that nice house in Mumbai. So why haven’t millions of houses been sold in Mumbai yet?
1.Rental Property Flexibility.
Things are gradually changing as fashion and the desperation to buy your own home in Mumbai have given way to a more effective way.
The rise in property prices and an escalation in the cost of living are leading the new generation, the millennial generation to take a very different approach to life – to enjoy everything for rent.
“Leased houses” is therefore becoming a very hot segment in the real estate business worldwide, including India. Today, you can rent varieties of houses in Mumbai, through local real estate agents, through real estate portals and various other sources at affordable prices.
Even if someone were to evaluate the accumulated rent of rental properties in Mumbai for life. It would still be drastically little of the total assets that would have to be financed to buy shelter in Mumbai.
Some professionals have chosen to live in a rental apartment in Mumbai. That is also a reason of unsold inventories in mumbai
It is loaded with this estimate and with a clear reason not to mortgage their lives with a house that many families, couples and individuals like to rent apartments in Mumbai instead of buying them.
Some professionals have chosen to live in a rented apartment in Mumbai, where the cost of purchasing a home is very high, along with daily expenses. The combination of all these factors and the new generation mentality has dramatically increased the demand for multi-fold rental homes.
Because traveling from one point to another is a time-consuming and traffic-intensive activity, many Mumbai residents prefer to have their rental homes near their children’s offices or school.
Taking advantage of a rented apartment in Mumbai also ensures that a person is saving his capital and also gaining flexibility when it comes to moving from one place to another.
2.Credibility and failing of the Real Estate Regulatory Authority (RERA)
As the whole large number of real estate developments in India falls, because the increase in rental plans is greatly decreasing the desire to buy property as an investment.
However, throughout the year 2019 and also in Q1 of this year, there were real estate stocks that were being piled up every month, and buyers refused to catch all the bait being thrown at them, even after the developers cut down.
25 to 30% of property prices. The other factors that have affected the slowdown are the credibility of property developers to deliver projects on time. The implementation of RERA is failing at a specific limit, as there are real estate projects under construction that have been delayed for one reason or another.
The exposure of major scams on various horizons in India includes schemes of banks and private companies etc. it has shaken many popular property investors / buyers who are now avoiding investing their money in the real estate empire.
In this city, many families make these streets as their roof and make a living. They are too poor to pay for accommodation in this overcrowded city, eat, sleep and raise their children on the sidewalk.
Narendra Modi, Prime Minister of India, has sworn an oath to alleviate this situation, promising 20 million affordable homes – “housing for all by March 31, 2022”.
However, more than a year after the scheme was launched in 2015, developers say progress has been slower and much more needs to be done to feed these contractors with some desire to integrate them if the ambitious goal is achieved. Reached.
While mid- and high-end units in the real estate sector are struggling primarily to find buyers. Affordable housing (low-cost housing segments) is the only segment that is witnessing the stress of buyers and developers after several reasons and projects announced by the government.
The efforts made by the government to make it attractive and profitable for private developers. Investing them in affordable housing space is marginal to tiny.
India’s real estate sector has faced a difficult period in recent years as sales slowed government efforts to bring down black money, demonetizing the two highest-value notes in November, adding problems to that sector, while, on the other hand, Strict attempts are made by the government to convince novice and veteran contractors to collaborate with the PMAY scheme somewhere hanging in the cliff garden, due to which the number of unsold stocks is increasing exponentially day by day.
Government also reduced the rate of goods and services tax
Earlier this year, the government also reduced the goods and services tax (GST) rate from 5% to 1% for popular housing projects under construction as of April 1, 2019. In total, the buyer can even claim an additional tax deduction from ₹ 1.5 lakh to ₹ 3.5 lakh against interest paid on home loans taken to buy an affordable home from the 2019-20 financial year.
The government announced the most recent R $ 20 billion stress funds in rupees. By the finance ministry, mainly to provide high liquidity incentives for developers and home buyers. In such a way that the buyers’ desires and the offer for the builders increased in the segment. However, the project outlined within the city limits or in an already developed locality is the most sought after by homebuyers.
Still, these projects are limited due to the high land values in the cities. Projects that are in remote areas are witnessing warm responses from home buyers.
Now if you are planning to buy a home. In an affordable housing project, be careful with the neighborhood and make sure the area has the necessary infrastructure. Also, assess the developer’s financial ability to execute the project before jumping. This is also one of the regions for unsold inventory in Mumbai.