December 10, 2015

No takers for Mumbai luxury apartments

There are 6,048 unsold apartments — 3,662 priced between Rs 5 crore and Rs 10 crore and 2,386 above Rs 10 crore —  in Mumbai till September this year, according to data collated by real estate research firm PropEquity.

According to Singh, no luxury projects were announced in the first half of the current year. “This has put pressure on an already-distressed real estate market,” Singh added.

According to Amit Bhagat, chief executive of ASK Property Investment Advisors, there is limited market for these apartments. “Only if you have a net worth of Rs 30-50 crore can you buy them.”

Bhagat says price discovery happens in these apartments only after delivery — when the embargo goes away, and maintenance charges and property tax kick in. This would put pressure on the investors to sell.

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