Central Mumbai has unsold inventory worth Rs 45,000 crore
Inventory worth Rs 45,000 crore remained unsold in Central Mumbai as on June 2019, according to ICRA, a rating agency. Considering the high value of inventory in the micro market, its underperformance has severely impacted the real estate sector in Mumbai, it said.
“Due to weakened demand for over the last two to three years, central Mumbai has witnessed significant high value inventory build-up,” said Anand Kulkarni, Assistant vice president and associate head (Corporate Ratings), ICRA.
As per ICRA, central Mumbai micro market has 33% share of total apartments, out of which 70% is contributed by tier-I developers. Central Mumbai contributes to 32% of total unsold inventory in Mumbai city, however, in terms of value of inventory, the share is much higher at around 55% and more than 70% of it is from tier-I developers.
The rating agency expects the weakness in the luxury real estate segment in Mumbai to continue in FY20 on the back of liquidity pressure faced by developers and weak consumer demand.