‘Home buyers delaying purchase due to higher prices in Mumbai’

Mumbai: Owing to escalating property prices and slowdown in sales, mainly due to consumers postponing their buying decisions, there is an inventory pile up of 46 months in the Mumbai Metropolitan Region (MMR), property portal Indianproperty.Com said in a report.

“Mumbai has an inventory pile up of 46 months, well above the accepted 8 to 12 months mark. This is a result of high pricing in the MMR. Inflated pricing has also postponed the buying decision considerably,” company Chief Executive Officer Ganesh Vasudevan said in a statement.

The top investment destinations across the Mumbai region are Panvel, Kalyan, Nalasopara, Kharghar, Mira Road, Dombivli, Kamothe, Ulwe and Sanpada, the report says.

During the first half of 2015 the government has initiated a number of infrastructure projects that will drive sales across Mumbai region like the Coastal Road Project from Nariman Point to Kandivali, clearance of Navi Mumbai Airport, which are expected to drive the investments in these regions, resulting in skyrocketing of property prices.

“The Maharashtra government plans to develop Mumbai as a gaming and animation industry hub — leading to job creation and investment opportunities, thereby increasing the demand for residential and commercial units. An additional 200 per cent FSI for IT parks will further reduce the rentals for commercial properties,” Vasudevan said.

According to the survey, in Panvel, 76 per cent home buyers prefer investing in properties that are in under construction phase. Nearly 71 per cent home buyers are looking for properties up to 30 lakh.

“The approval of elevated railway line from CST to Panvel with a six lane road is expected to reduce the commute time. This has driven the higher demand for properties in these localities,” he said.

In Kalyan, nearly 71 per cent of respondents preferred one BHK compact housing unit. Statistics indicate that there has been a rise in property price by 12 per cent in the last two years in this region.

“MMRDA has planned a 29 km Kalyan Ring Road to connect Kalyan and its neighbouring localities. Thus, increasing demand in this locality,” Vasudevan said.

According to the study, home buyers in Nalasopara also prefer one BHK compact housing units and are looking at properties (nearly 91 per cent) up to Rs 30 lakh.

“The area is well planned and developed by CIDCO and provides better infrastructure for its residents. This is driving the increasing demand in this locality,” he said.

Vasudevan further said the government’s vision to attract Rs 50,000 crore investment to create one million jobs in the next five years will improve the demand for residential real estate in and around these commercial zones in turn improving the social viability of the region.