83% Of Units Sold In Q2 In Mumbai, Pune Are Under-Construction: PropTiger Report
Homebuyers in Mumbai and Pune continue to repose their faith in under-construction properties at a time when there are reports of large-scale project delays in delivery. PropTiger.com data shows nearly 83 per cent of all projects sold in the Q2FY20 are under-construction properties.
The trend in these markets, say experts, are primarily due to the state’s proactive regulatory authority- the Maharashtra Real Estate Regulatory Authority or MahaRERA. In addition to efficiently clearing cases, it has also walked the extra mile to ensure buyers’ interests are safeguarded by way of providing wide-ranging interpretation to the consumer-centric law. For instance, the MahaRERA has ruled in the past that buyers of projects where builders have received an occupation certificate, could also approach them to seek justice from unfair practices.
While being under pressure to perform while religiously following norms, builders in Maharashtra have shown greater levels of diligence in project delivery when compared to the other prime markets, including the national capital region (NCR).
“Mumbai is counted among the most expensive property markets in the world and investing in under-construction projects is comparatively more affordable for buyers. This could be another reason for demand for such projects in the MMR,” says Dhruv Agarwala, Group CEO, Elara Technologies.
Launch and sales of homes in Mumbai and Pune
While new launches and home sales both, decreased in the two markets during the quarter year-on-year, unsold stock reduced significantly in Mumbai and Pune, data show.
In the MMR, a total of 8,132 units were launched in the July-September quarter, declining 62 per cent over the same quarter last year. With 10,425 units, new launches in Pune declined by 22 per cent in the same period. While 21,985 units were sold in the MMR in Q2FY20, a fall of 23 per cent over Q2FY19, Pune market saw the sale of 13,644 units, reducing 19 per cent y-o-y.
Majority of the units launched and sold in Mumbai and Pune are homes priced between Rs 25 lakh and Rs 75 lakh budget, data indicate.
Inventory stock in Mumbai and Pune
Over four lakh ready-to-move-in housing units are currently available as unsold stock in the two markets, despite a 15 per cent decline in the MMR and a nine percent reduction in Pune. While the MMR has an unsold stock consisting of over 2.93 lakh units, Pune has an inventory of over 1.44 lakh homes.