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Realty check: Mumbai region has over 2.13 lakh unsold homes

According to Knight Frank, with demand falling by 25% during January to June 2014, there are over 2.13 lakh unsold homes in Mumbai region alone

 

With demand falling by a whopping 25%, the number of unsold homes at the end of June 2014 rose to over 2.13 lakh units in Mumbai Metropolitan Region (MMR), says property consultancy Knight Frank India.

 

In its half yearly analysis of realty sector, Knight Frank said, during January to June 2014, buyers continued to sit on the fence in anticipation that the new and stable leadership at the Centre would revive the ailing economy.

 

Dr Samantak Das, chief economist and director for research at Knight Frank India, said, "The shrinking size in terms of demand and supply confirms the misfortune of the region’s residential market. However, with a new, stable government at the centre, stakeholder sentiment has witnessed a remarkable improvement. The first budget under the leadership of Mr. Narendra Modi offered several positive surprises to the realty sector, with special focus on housing that will benefit the Mumbai realty market, with peripheral areas being the biggest beneficiaries."

 

Knight Frank said it expects sales volume across top six metros, Mumbai, Pune, National Capital Region (NCR) of Delhi, Bengaluru, Chennai and Hyderabad to experience a phenomenal growth rate of 26% in second half of 2014, compared to same period of 2013.

 

“A slowing economy, rising interest rates by banks, high inflation and the weak rupee, among others, contributed towards building a negative sentiment among home buyers that resulted in dwindling sales volumes within the residential market. However, the government’s intention to revive the economic growth of the country seems to have struck the right chord among investors and we do notice a substantial change in sentiments for the better," said Shishir Baijal, chairman and managing director of Knight Frank India.

 

Talking about office market in MMR, the report said during the first half of 2014, absorption of office space, at 2.5 mn sq ft declined by 34% over same period in 2013 owing to the general elections, which resulted in corporates adopting a non-committal attitude towards taking up office space during the first half.

 

“As for the office market, government initiatives for improving business sentiments, along with impetus on real estate FDI and REITs, will bode well for the country’s financial capital. This is expected to revive the absorption in office space over the next six months,” Dr Das added.

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COMMENTS

sharad mehta

3 years ago

Reality in Real Estate Mumbai.

Shailaja Rajesh

3 years ago

Good to know the official figures are closer to what is happening in the Mumbai realty sector. One has to just drive past the main roads of Mumbai at night to see the newly completed high rises looking like ghost towns. The minimum price for most newly constructed homes starting at 1Cr., pathetic infrastructure, questionable quality is keeping genuine buyers away. Travelling to Thane one will find that the once sprawling industrial area is now deserted with most of the industries shut or moved to a new location. One can see ads for new residential complexes coming up on the walls of these factories.
I have even "heard" of security guards asking people who come looking for purchase their budget. Refusing them entry if their budget is below the quoted price for that particular complex.
One can just keep writing about the horrible realty market in Mumbai currently. But its very hard to find thoroughly researched articles on this topic anywhere in the mainstream media. One has to rely on the comments sections of the articles to find truth!!

R Balakrishnan

3 years ago

Would love to know which pockets of "Mumbai" region are these excess supplies.

SBI offers uniform interest rate of 10.15% on home loans

SBI is offering uniform interest rate of 10.15% on home loans irrespective of the loan amount

 

State Bank of India (SBI), the country's largest lender said, it has decided to offer uniform interest rate on home loans from 26 August 2014, irrespective of the loan amount. As per the new structure, interest rate for SBI home loan would be 10.15% notwithstanding the credit amount. Woman borrowers would continue to get special benefit of 0.05% or five basis points lower interest rate on home loans.

 

Here are the revised interest rate from SBI for women and other borrowers...

 

Borrower’s category

Home loan interest rate, irrespective of loan limit

Women

10 bps above the BR i.e. 10.10% p.a.

Others

15 bps above the base rate i.e. 10.15% p.a.


Last year, the state-run lender, while reducing its interest rates for home loans, had rolled out a separate interest rate structure for woman borrowers, that was 0.05% lower than its normal rates.

 

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COMMENTS

Prashant Rane

3 years ago

Is this rate applicable to existing customers if not is there any way to switch to new rate (by paying charges)?

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