High-end residential sales jump 60.8% y-o-y

• Sales in the High-end category recorded a new high as home buyer preferences for spacious homes supported the sales momentum. Industrialists, HNIs, C-suites and entertainment celebrities were witnessed buying high-ticket apartments in premium and desirable locations such as Malabar Hill, Worli and Bandra.
• The Thane submarket recorded the highest share with 25.8% of the total High-end sales, followed by Navi Mumbai and the Western Suburbs II submarkets, respectively. Western Suburbs II, Thane and Navi Mumbai submarkets recorded all-time high sales. Palm Amore in Navi Mumbai and Oberoi Forestville in Thane were some notable launches that recorded robust sales.

Supply increases exponentially y-o-y

• The quarter witnessed new launches totalling 7,927 units in the High-end segment, down slightly by 6.5% q-o-q yet rising to an all-time high for the full year. A majority of the launches were spread across nodes in Navi Mumbai, which had 38.4% of the total launches, followed by Thane and Western Suburbs II with respective shares of 36% and 12.2%.
• Except Thane and Navi Mumbai, all other submarkets recorded a decline in new launches compared to the previous quarter. Major launches in 4Q23 were Oberoi Forestville in Thane, Rivali Park Stargaze in Western Suburbs II, Palm Amore in Navi Mumbai and Ruparel House in South Mumbai. Around 23% of all project launches in the quarter were in the price bracket of INR 30 to 50 million.

Capital values up q-o-q

• Overall capital values recorded a q-o-q rise of 1.2%, while we saw a decent growth of 5.6% y-o-y as demand remained strong for premium apartments in the city. Rising input costs were also seen to have an impact on the continued price growth. Eastern Suburbs I and Thane recorded the highest price growth among all the submarkets.
• Rents increased by 0.8% q-o-q, with the Navi Mumbai submarket recording the highest rent growth. This was driven by the rising commercial stock and infrastructure developments, such as Navi Mumbai International Airport, the Mumbai Trans Harbour Link (MTHL) and Navi Mumbai Metro, all of which boosted demand for apartments in that corridor.

Outlook: Demand momentum to be sustained for High-end apartments

• The High-end Residential market is expected to grow further with rising demand for luxury homes by high-net-worth individuals, non-resident Indians, industrialists and C-suites. Several infrastructure projects coming in the near future will improve connectivity, making it easier for people to commute to work and open up new areas for development.
• We expect that prices will remain sticky with an upward trend as new launches hit the market at higher prices, and strong sales should support developers as they increase prices for their well-performing projects. Capital values are expected to rise slightly and at a faster pace y-o-y.