APPD Market Report Article


December 1, 2021


INR 97.0


High-end residential sales improve in 3Q21

  • Demand for high-end residential units in 3Q21 was up by 15% q-o-q. Thane and Eastern Suburbs I submarkets recorded improved sales q-o-q, increasing by 27.7% and 35.6%, respectively. Thane remained the top contributor with 346 units sold in 3Q21, followed by Eastern Suburbs I having sold 339 units.
  • Thane, Navi Mumbai and Eastern Suburbs I together contributed almost 61% of the total sales in 3Q21. Projects by reputed developers with a good track record of delivering projects on time, recorded good sales.

New launches inch up marginally in 3Q21

  • A total of 1,085 units were launched in the high-end segment during 3Q21, a marginal rise of 2.6% q-o-q. South Mumbai, Western Suburbs I and Western Suburbs II submarkets recorded notable growth in the number of new launches in 3Q21 over the previous quarter.
  • South Mumbai contributed the most of the quarterly launches, with a share of around 62% followed by Western Suburbs I submarket at 25%. Some of the major projects launched in 3Q21 in the high-end segment were Indiabulls Sky Forest Phase 3 in South Mumbai submarket and Verve in the Western Suburbs I submarket.

Capital values rise slightly

  • In 3Q21, the capital values in the high-end segment inched up slightly, primarily due to sales growth on a q-o-q basis.
  • Rents remained stable across all submarkets in 3Q21. As capital values increased only marginally while rents remained stable, yields were almost unchanged during the quarter.

Outlook: Sustained momentum likely to continue

  • The high-end residential market is likely to continue the momentum going forward as market sentiment remains positive on the back of falling COVID-19 cases and increased vaccination rates. We do anticipate some impact on launches and sales if the situation on the ground changes.
  • The trend of developers entering into JV partnerships or taking over completion of stalled projects will continue in the near term. The relaxation in the Coastal Regulation Zone (CRZ) norms is likely to boost construction activity in the high-end segment. However, construction activity may be slow off the blocks given the city is gradually recovering from the second COVID-19 wave.

Note: Mumbai Residential refers to Mumbai's prime residential market.

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