Mumbai Comes Second After Delhi in Home Sales

Bangalore: Although Delhi may come first in the list of unsold homes but it sells home faster than Mumbai, whereas Mumbai has less number of unsold homes than Delhi but takes long time to sell. According to a study conducted by Liases Foras, a real estate rating and research consultant, in Mumbai real estate developers need to wait more than three years to clear 1.13 lakh units as potential buyers are showing less interest due to high property prices, reports Shubhra Tandon of The Financial Express.

The study has covered units in Mumbai Metropolitan Region (MMR)- Mumbai city, Thane, Kalyan and Navi Mumbai, National Capital Region in Delhi, Pune, Chennai Hyderabad and Bangalore.

Delhi-NCR has 1.60 lakh units or 232.57 million square feet of unsold homes, which is nearly twice of Mumbai. However, Delhi is expected to sell its unsold homes faster, which may take about 23 months.

Om Ahuja, chief executive officer at Jones Lang LaSalle India stated that "The NCR market is primarily an investor market and has very little comparison with Mumbai." He further said that "The real estate market in areas like Gurgaon or Noida attracts a lot of money from neighbouring states like Punjab, UP and Delhi as people invest in residential properties."

According to the Liases Foras report, Pune will sell its unsold homes faster among all six metros; it may take just 14 months to sell 43.06 million square feet. A sharp increase in interest rates is the main reason behind the low sales as buyers are avoiding high home loan installments. Whereas, Bangalore and Chennai will take nearly 20 months to clear its 71.29 million square feet and 42.75 million square feet of unsold homes, respectively. And Hyderabad is likely to take 38 months to clear 33.82 million square feet of unsold homes.