subject: Really...? Is 10% Properties In Mumbai Lying Vacant? [print this page] Mumbai city prized for its real estate, it is of interest to many people coming to Mumbai for stay and to develop there career. Over 4.6 Lakh of the city's nearly 42 Lakh census houses are lying vacant reveals district level data from Census 2011. Comparing to 8.5% a decade ago from which 10.5% of houses in the island city are lying vacant. At the time of the census count near about 1.5% of houses were locked which could be because all the family members were away when enumerators visited.
Census officials said it would be possible to estimate the city's housing shortfall only when findings related to homeless individuals are released. Census houses also comprise residences as well as other dwellings which included shopping complex, offices, hotels, workshops, places of worship among others.
As said by the expert that the extent of vacancy could indicate what a goldmine Mumbai's real estate has become. An Urban Development expert Mr. R N Sharma of Tata Institute of Social Sciences believes the vacant stock indicate profiteering is at play in an era of sky-high property prices. The speculators and builders don't mind holding property in the hope that prices may rise at a later stage.
Census data should be put in perspective and there could be many reasons for houses lying vacant as said by other housing expert and former MHADA Chief Chandrashekhar Prabhu. There are many state of disrepair or cessed buildings particularly in the island city and families could keep such a room locked in wait for redevelopment while they stay in the suburbs.
Many Indian's living in other cities or working abroad have found residential property of Mumbai to be a profitable investment. Demographic expert Mr. P Arokiasmy said many successful people buy property in Mumbai as an investment purpose but live elsewhere which may contribute to vacant housing stock.
There are other reasons as well which is the main in Mumbai which relates in vacancy of house the real estate sector is probably has repeated its 2008 story of hogh prices and few buyers. Property experts believe the market is overheating again, breaching the peak level of 2008 as developers show no sign of lowering prices despite poor sales.
A recent Crisil report sales says sales of new homes declined 40% between March 2011 to Febuary 2012 as analysis done by property research agency Liases Foras shows average property prices are 15% higher in Mumbai and 30% higher in the Mumbai Metropolitan Region (MMR) over their previous peak in June 2008. The rise resulted in a further increase in unsold house stock.
Since November 2008, unsold stock in Mumbai has gone up from 24.66 million sq ft to 50 million sq ft in December 2011, while that in MMR increased from 79 million sq ft to 110 million sq ft going by the quantum it will take roughly 44 to 58 months to clear the unsold stock in MMR. Witnessing a scenario similar to 2008, when developers refused to heed the global economic recession and high interest rates to reduce prices.
