As per a report released by Liases Foras, a real estate rating and research firm, the Mumbai Metropolitan Region (MMR) witnessed its highest sales of 15,848 apartments in the last seven years during the Q2 of 2017. Some 5,265 of these units were sold in Mumbai.
"Mumbai constituted 69% of new supply of entire MMR with central suburb contributing the most,’’ said Pankaj Kapoor, MD of Liases Foras.
As per the report, weighted average price has remained almost stagnant through the last seven quarters. This can be attributed to the combined effect of new supply in affordable segment and time correction in the otherwise speculative high prices in the market.
"Despite the upturn in sales, the inventory still remains high,’’ said Kapoor, adding that it will take 51 months to sell the current inventory.
"It shows the market is still not efficient; an efficient market maintains 8-12 months of inventory,’’ he said. The present unsold inventory in MMR is 2.67 lakh units and in Greater Mumbai the unsold flats stands at 1.05 lakh.
The report said sales across top eight Tier I cities in India increased by 6% on quarter on quarter basis. This is after the 21% increase witnessed in last quarter. Post demonetisation market grew by 28% in term of sales, it said. MMR constituted 24% of overall Tier I cities sales, recording the highest sales figures of 15,848 units. Chennai was the only market to witness a (-3%) decline.
Sale of affordable houses (properties priced below Rs 25 lakh) across the eight cities accounted for 17% of the overall sales as compared to 16% in the previous quarter. MMR recorded maximum sales in the affordable segment (24%) followed by Pune (22%). Sales in the cost bracket of Rs 50 lakh to Rs 1 cr increased marginally by 1%.
Unsold stock which is at 9.5 lakh units today in Tier I cities, marginally declined by -0.3% this quarter. Pune witnessed a -4% decline followed by Ahmedabad and Bangalore at -3%. Chennai market recorded an increase in unsold stock by 9% followed by Hyderabad (4%).