With 340,000 unsold units in Mumbai, developers are under pressure

The unsold inventory of homes in the Mumbai Metropolitan Region (MMR) hit a new high as launches outpaced sales in India’s most expensive housing market. The number of new units available for sale reached almost 340,000 units on September 30, according to data computed by real estate intelligence platform Liases Foras. This number is almost 5x the annual sales of developers in the region. More than a third of this unsold stock is located in Mumbai city, with the rest in locations such as Thane, Panvel, Navi Mumbai and other extended suburbs. Spurred by an FSI discount offered by the municipal corporation, developers in Mumbai went into overdrive in signing new projects. Approvals for new projects last year rose 5x in comparison to a normal year. Those approvals are now seeing conversion on the ground as builders launched projects in a flurry during the festive season. In Mumbai, 30 per cent of the inventory is priced below Rs 10 million, while 70 per cent is less than Rs 20 million. Contrary to the view held by many commentators that larger homes have been all the rage since COVID-19, 75 per cent of the inventory comprises 2BHK units and smaller configurations. Also Read ACC reports net loss of Rs 870 million for September quarter JSW Cement to set up new cement plants with Rs 3,200 bn investment