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Mumbai, Pune Buyers Prefer Under-Construction Homes: PropTiger Report
Proptiger.com  |  November 29, 2019

Sunita Mishra

At a time when buyers’ preferences are skewed towards ready-to-move in properties, in the back of large-scale project delivery defaults, key residential markets of Maharashtra are showing a different trend.

 

PropTiger.com data shows that majority of units sold in the Mumbai Metropolitan Region (MMR) and Pune during Q2FY20, are under-construction homes. Nearly 83 per cent of the total 21,985 sold in the MMR during the July-September quarter were under-construction homes. The percentage was the same in Pune, where a total of 13,644 homes were sold in the three-month period.

 

“The real estate regulatory authority in Maharashta or the MahaRERA is undoubtedly the most proactive body in India. Apart from ensuring rules under the consumer-centric law are followed across Maharashtra, the MahaRERA has also been instrumental in making buyer-friendly judgments, keeping unfair practices in check. This encourages buyers to keep investing in under-construction projects across the state,” says Dhruv Agarwala, Group CEO, Elara Technologies, the owner company of PropTiger, Makaan, Housing and FastFox. 

 

“Mumbai ranks among the most expensive property markets in the world and investing in under-construction projects here is comparatively more affordable for buyers. This could be another reason for the increased investments in under-construction projects in the MMR,” adds Agarwala.

 

Budget-wise analysis of units of launches and sales

 

Budget-wise, units falling in the range of Rs 25-75 lakh account for the majority of launch as well as sales.

 

While 68 per cent of all units sold in the MMR during the quarter were priced between Rs 25 lakh and Rs 75 lakh, 90 per cent of homes sold in Pune were in that price range. Similarly, 70 per cent of the over 8,100 units launched in the MMR during the quarter ending September, were priced between Rs 25 lakh and Rs 75 lakh while this percentage stood at 88 per cent for Pune, where a total of 10,425 units were launched.

 

Inventory stock in Mumbai and Pune

 

In the past one year, inventory stock in the two cities have declined significantly, registering a 15 per-cent and nine per cent  fall in Mumbai and Pune respectively. While there are over 2.93 lakh unsold housing units in the MMR market, Pune also has an unsold stock consisting of 1.44 lakh units.

 

Inventory overhang — the period within which developers are likely to sell of the current stock keeping in account the current sales velocity — has also improved in both these cities. Inventory overhang is 33 and 25 months in Mumbai and Pune respectively, while last year, it stood at 42 and 34 in the same order.