Demand for high-end residential units continues to rise

• Overall demand for the high-end residential segment retained its momentum in 4Q22, a q-o-q rise of 26.0%. Sales in the new launches during 4Q22 recorded a steep rise of 93.7% q-o-q compared to sales numbers clocked by the 3Q22 launches. Improved market sentiment and increasing appetite for bigger homes led to the healthy rise in demand.
• The Eastern Suburbs I dominated the share of high-end residential units with 35.4% of the total sales, followed by Thane and Navi Mumbai. Select buildings recorded healthy buyer activity in these submarkets leading to the increased sales numbers. L&T Emerald Isle in Powai, Gurukrupa Ekatvam in Vikhroli and Prestige City in Mulund recorded the maximum traction in sales.

New launches record a steep q-o-q rise of 42.8%

• A total of 5,363 units were launched in the high-end segment in 4Q22, a steep rise of 42.8% q-o-q and 511.5% y-o-y. South Central Mumbai and Thane submarkets recorded significant rises in the number of new launches during 4Q22 over the previous quarter.
• Eastern Suburbs I contributed the most to the quarterly launches, with a 28.0% share, followed by South Central Mumbai submarket with a share of 21.4%. Some of the major launches during the quarter in the high-end segment were Codename Westbay Phase 1 at Andheri, Raymond Realty Ten X Habitat-G at Pokhran Road and Bhoomi Simana Phase 1 Wing B at Parel.

Capital values witness a marginal rise

• Capital values witnessed a marginal rise for the high-end residential market during the quarter. This rise was primarily on the back of continued momentum in sales coupled with the rise in the input material costs.
• Rents increased slightly in 4Q22, as most companies opted to encourage employees to work from the office, enabling the surge in demand for rental housing. Also, the increased redevelopment activity in the city contributed to the rise in rents as owners were actively adding to the rental housing market demand.

Outlook: Momentum to be sustained for high-end residences

• 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.
• The cost of key raw materials, such as steel, iron and cement, will be key influencing factors for the rise in capital values, as commodity prices have been on an upswing though some cooling off is expected. Better demand levels will continue to support price growth in the high-end segment.