Home > companies > news > 45% of residential inventory unsold in Mumbai: report

Mumbai: Sales in the Mumbai residential market, India’s largest, showed no signs of immediate recovery, according to a report released on Tuesday by real estate consultant Knight Frank India.

Almost 45% of the under construction and inventories in Mumbai remained unsold during the January-September period, the report said.

Nearly 290,000 residential units are under construction in the Mumbai residential market while unsold inventory levels are close to 130,000. Unsold inventories constituted units in ready as well as under construction projects.

“The fact that the unsold inventory level in the Mumbai Metropolitan Region is almost 45% while that in the National Capital Region (NCR) is 26% gives a perspective of the dire situation of the Mumbai residential market, considering that the NCR has nearly twice the number of units under construction compared to Mumbai." said Samantak Das, chief economist, director-research and advisory services, Knight Frank India.

New launches dropped 28% to approximately 47,488 units during the January-September period from a year earlier.

The report states that absorption levels for the January-September period have dropped 26% to approximately 39,000 units.

Demand is likely to remain subdued over the initial part of 2014 because of the sluggish economy, the report said.

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