APPD Market Report Article

Mumbai

February 28, 2022

0.1%

INR 97.1

N/A

High-end residential sales see q-o-q growth

  • The high-end residential segment saw improved demand in 4Q21 with sales up by 5.5% q-o-q and 24.5% y-o-y. In absolute unit terms, Eastern Suburbs I remained the top contributor with 404 units sold in 4Q21, followed by Thane which sold 330 units. South Mumbai and South Central Mumbai submarkets saw q-o-q sales volumes jump by 121.3% and 32.6%, respectively.
  • Eastern Suburbs I, Thane and Western Suburbs II together contributed 59.0% of the total quarterly sales. Improved market sentiment and demand for bigger homes by established players led to healthy sales in the quarter.

New launches slightly down q-o-q

  • A total of 877 units were launched in the high-end segment during 4Q21, a marginal fall of 19.2% q-o-q, albeit a rise of 61.5% y-o-y. South Central Mumbai, Thane and Navi Mumbai submarkets recorded significant growth in the number of new launches in 4Q21 over the previous quarter.
  • Navi Mumbai contributed the most to quarterly launches, with around 27.8% share, followed by South Central Mumbai submarket with 26.0%. Some of the major projects launched in 4Q21 in the high-end segment were Godrej Bayview in Navi Mumbai and Prestige Jasdan Classic in South Central Mumbai submarket.

Capital values remain stable in 4Q21

  • In 4Q21, capital values remained stable for most of the high-end residential projects. With the festive season, developers kept incentives and offers in place and also kept the prices stable in order to offload unsold inventory.
  • In 4Q21, rents inched up slightly across submarkets, except in the Navi Mumbai submarket where they held steady.

Outlook: Demand to witness continued momentum

  • The high-end residential market is likely to continue with its momentum moving forward as market sentiment improves with easing of restrictions and economic activity resuming. However, with the third wave of the pandemic looming ahead, economic activity may be curtailed and demand momentum may show some sluggishness in the short term.
  • The trend of developers entering into JVs or taking over stalled projects will continue in the medium term. The relaxation in the Coastal Regulation Zone (CRZ) norms is likely to boost construction activity in the high-end segment with sea-view apartments a big draw in this category. On-ground construction activity may be hit in the short term with restrictions due to COVID-19 concerns.

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

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