Mumbai, September 2022: New supply as well as property sales in Mumbai recorded 42% and 12% increase between April and June 2022, as buyer sentiments continued to remain robust towards residential real estate in the city.
Mumbai continues to take the highest share of 35% in the national sales tally with 26,150 units sold in April-June 2022 quarter. The majority of sales transactions took place in the peripheral localities of Thane West, Dombivli,Vasai,Panvel, and Kalyanas per the recent report by online real estate company PropTiger.com backed by REA.
In fact, 42% of potential homebuyers from Mumbai who took part in a joint survey conducted by Housing.com and industry body NAREDCO, voted real estate to be their preferred asset class. The survey also revealed that most buyers expect property prices to increase and want flexible payment plans and discount offers to finalise their home purchase plans.
Properties in the INR 1-3 crore price bracket saw the maximum (28 per cent) traction in Mumbai, with the highest sales in this category taking place in Thane West. 1BHK remained the preferred configuration amongst the homebuyers taking the highest share of 53 per cent in the overall sales in Mumbai.
“Even though property prices are firming up, buyer sentiment in India’s financial capital continues to be robust. Home loan interest rates might have increased slightly in the past few months. However, they are still below the levels seen in 2019. Since the pandemic has also made remote working a mainstay, many home buyers are actively looking for properties that would act as residence-cum-office,” said Mr. Vikas Wadhawan, Group CFO, Housing.com, PropTiger.com&Makaan.com.
“Mumbai’s quarterly residential sales volume is 95 per cent closer to its pre-COVID levels. With a 12 per cent sequential rise in demand in the April-June quarter, the city continues its sales momentum as it witnessed a healthy 15 per cent increase in property registrations in July 2022. The outlook for Mumbai remains positive on the back of sustained end-user demand. Peripheral areas such as Thane West, Kalyan-Dombivli, and Vasai-Virar will drive the city’s property market in the coming quarters.” said Ms. AnkitaSood, Director and Head of Research,Housing.com,PropTiger.com& Makaan.com.
A total of 43,220 units were launched in Mumbai in April-June 2022 quarter registering an impressive 42% growth sequentially. Most of these new unitswere launched in themicromarkets such as Thane West, Dombivli, and Borivali.
Recall here that in Mercer’s 2022 Cost of Living survey, Mumbai has been declared the costliest city in India in terms of both living expenses and accommodation costs. Despite having the highest property prices in top-8 cities, the positive buyer sentiments driven by the growing importance of owning a home in the post-coronavirus world has sustained the stakeholder confidence who continue to bet on real estate potential and are busy launching new projects in the city.
Inventory overhang in Mumbai positively declines to 38 months from 64 months
Mumbai accounts for 36% of the total 7.36 lakh unsold inventory in the top-8 cities, according to the report. However, while Mumbai is sitting on the highest unsold stock among the 8 prime residential markets in India, the sustained property demand momentum has led to a decrease in the inventory overhang in Mumbai, which stood at 38 months at the end of Q2 2022 as compared to 64 months in the same period in the preceding year.
Inventory overhang in the estimated period developers take to sell off the unsold stock in the market, based on current sales velocity.
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