No buyers but soaring prices: A scam called Mumbai realty
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Not just buyers, but Mumbai developers too are feeling the pinch of the overheated real estate market owing to poor sales. This is evident as three property exhibitions have been cancelled in Mumbai until further notice.
Maharashtra Chamber of Housing Industry (MCHI) did not directly blame poor sales for this but mentioned some policy paralysis with civic agency, reports Business Line.
And its not wrong in doing so. Are actual home buyers ( not investors) really going to come to exhibitions when most houses in Mumbai are way beyond the aam admi’s means. Demand is simply not picking up and inventory of 122 million sq ft was lying idle in December last year. A study by real estate research firm Liases Foras had shown the weighted average price of a flat in Mumbai now costs more than Rs 1 crore. Liases Foras estimates that even if interest rates come down to 9 percent from the current 14-15 percent, the realty market needs to undergo a 33 percent price correction to go back to 2009 levels.
