The real estate market in Mumbai continues to spiral downwards with the number of unsold apartments in the financial capital touching 85,000, reports Hindustan Times.
This includes ready-made as well as the under-construction projects.
There has been a spike of 5000 unsold houses in just three months.
In fact in the Mumbai Metropolitan Region (MMR), that is Mumbai, Thane, Navi Mumbai and Raigad adds up to a whopping 2.26 lakh unsold houses.
The main reason for this slowdown is the exorbitantly high prices of real estate in the financial capital. According to a report by property consultant Jones Lang LaSalle, residential market price is expected to rise 6 per cent in Mumbai and suburbs in 2016.
Experts and builders while admitting to the dip in sales believe that the figures are exaggerated.
Builders are reportedly on a selling spree, as they are reducing prices by squeezing their margins, in a bid to lure as many customers as possible as they cannot hold on to such an inventory. But prices still remain among the highest in India.
The Reserve Bank of India (RBI) though has hiked interests on home loans, RBI governor Raghuram Rajan last month promised to cut interest rates soon, reports DNA.
(Feature image source: Twitter | @airnewsalerts)