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A situation of plenty continues to plague the Mumbai real estate market with unsold inventory amounting to 80,000 units which forms 37 per cent of the total residential supply under construction.
The market stagnated in June due to high prices and most buyers having stayed away expecting an imminent drop in prices in the near future.
The report indicates prices have been moving in a narrow range in the past four quarters as a virtual stoppage of new launches over the past year has constrained supply and cushioned prices from dropping in spite of absorption levels steadily trending downward.
Absorption numbers in FY2012 are estimated to have dropped more than 60 per cent from its 2007 heydays and 35 per cent from FY2011, to an estimated 45,000 units. This steep drop in absorption levels should have resulted in a similar correction in prices.
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