APPD Market Report Article
MumbaiSeptember 4, 2023
Dr Samantak Das, Head of Research, India
Highest-ever sales in the high-end segment
- Sales of high-end residential units recorded a historic high as homebuyers continued to show a preference for bigger homes. Big-ticket deals continued to be recorded in high-demand locations like Juhu, Malabar Hill and Worli, the hotspots for such deals. Industrialists, movie stars, celebrities and the C-suite were recorded purchasing high-end apartments.
- Thane accounted for the highest share of 2Q23 sales with 19.7%, followed by the Eastern Suburbs I and Western Suburbs I with 16.9% and 15.3%, respectively. The South Mumbai submarket recorded sales that were almost similar q-o-q. Projects that recorded healthy sales in the quarter included Oberoi Elysian Tower B in Western Suburbs I and The Gateway in Navi Mumbai.
New launches up 26.3% q-o-q
- A total of 6,284 units were launched in the high-end segment in 2Q23, up by 26.3% q-o-q and at a record high in the city. Growth corridors in the suburbs were key drivers with more high-end launches recorded there.
- New launches were mostly driven by the Thane and Navi Mumbai submarkets, which accounted for 29.1% and 17.4%, respectively. However, key submarkets like South Central Mumbai and Western Suburbs II saw a sequential decline in launches.
Capital values inch up marginally
- Capital values recorded a slight q-o-q rise of 0.9% as the appetite to buy high-end residential apartments remained strong, allowing developers the headroom to increase prices. Increased input material costs were passed onto homebuyers, which was also a factor in the rising capital values. Suburban markets saw higher price growth, with Thane recording the highest q-o-q increase.
- Rents were up marginally across all submarkets as demand remained strong among tenants for such projects, especially movie stars and the C-suite.
Outlook: Sustained momentum to continue in the high-end segment
- The High-end residential market is likely to continue its momentum going forward, on the back of improved market sentiment and increasing demand for bigger homes.
- While higher input costs will continue to be a factor in price discovery, the sales momentum is also likely to support developers as they hike prices in this segment.