India real estate market fact of the day

From the Indian Express,

Data collated by the realty research agency Liases Foras, from 2008 till date, show that 88 per cent of the 25.51 lakh residential projects launched across 8 cities have been delayed. 25 per cent of these projects have been delayed by more than 4 years from the promised delivery date. 

A large part of the delay is also due to the low demand. As the real estate boom peaked in the later part of the last decade, projects were initiated with the belief that 'build and they'll come'. Once the market tanked, the delays and inventory accumulation was inevitable.

A very good presentation by Liases Foras has this stunning graphic of how property prices in Greater Mumbai exploded. The average cost of a flat rose by an annual rate of 35% from Rs 27 lakh in 2004 to Rs 191 lakh in 2010.

As a reflection of the extreme form of gentrification, just 1% of the inventory (144 units) in Greater Mumbai costs below Rs 25 lakh and just 6% below Rs 50 lakh! Affordable housing has been relegated to the suburbs.