NAVI MUMBAI: The city has surged ahead in the race with Thane on the real estate front this year, with 8,845 units being up for sale in the last 12 months as against 5,406 units the previous year. A study done by Cushman and Wakefield (C&W), a global property consultant, revealed these statistics.
During the same period, Thane saw just 2,667 units being up for sale, compared to 8,675 units in 2012.
A senior analyst of C&W said, "Navi Mumbai has higher number of units as developers have launched big projects. Property prices are bound to correct considering the quantum of supply of residential units hitting the market in both Navi Mumbai and Thane."
Navi Mumbai saw an increase in the number of units in the Rs 75-lakh to Rs 1-crore categories in the nine months till September. During the same period, in Thane there was an increase in units costing between Rs 1 crore and Rs 1.25 crore.
"Developers are keeping new launches in check to bridge the supply and demand gap," said a Thane-based property consultant.
"What I cannot fathom is why developers are still shying away from correcting the prices to boost sales. A majority of them are facing severe cash crunch. All their projects are getting delayed by an average of two years. In the process, neither the developer nor the investor is benefitting," said another property consultant.
Rising inventory levels are putting a lot of pressure on realty developers in the expensive property market in Mumbai. About 2,90,000 residential units are under construction in Mumbai, while unsold inventory levels are close to 1,30,000.
Sources from C&W said launches in Mumbai were healthy during the year and increased by 6% compared to 2012. The contribution of 1BHK housing units in the range of 600 sq ft to 720 sq ft was also high in suburban and peripheral locations.
Sanjay Dutt, executive managing director of C&W, said, "The capital values in Mumbai have been stable in the fourth quarter compared to last year. However, with capital values steadily increasing, rental yields in the city have declined."