Mumbai residential launches dominated by the mid segment in Q1

Over 60% of the launches were from this segment.

In a recent report, Cushman and Wakefield revealed that in the first quarter of 2024, Mumbai’s residential sector witnessed launch of 19,461 units, a 21% growth over previous quarter but in-line with activity witnessed in the same quarter last year. 

The Eastern and Western suburbs drove Q1 launches with a 21% share each, with major launches concentrated in locations like Sion, Chembur, Kandivali and Andheri. 

Here’s more from Cushman and Wakefield:

Peripheral suburban markets witnessed a slowdown in comparison to average momentum seen in the last four quarters, while other sub markets witnessed a steady rise. 

Western Suburbs Prime particularly witnessed a spike in quarterly launches (20x jump compared to last four quarter average) given the increased launch in high-end & luxury units during the quarter, with close to 43% contributed by reputed developers in the city. 

Mid segment continued to dominate quarterly launches 

Mid segments dominated the quarterly launches with about 61% share. High segment only accounted for 19% share in the quarterly launches. In comparison to the last four quarter average, launches in the affordable segment largely remained muted while the high-end & luxury segments witnessed a robust growth (60- 80% growth over average). 

The High-end & Luxury segment is expected to see a boost in upcoming quarters the South Central and Western Prime sub markets with now operational coastal road (from Marine Drive –Worli) and soon to be operational Metro Line 3 (Andheri to Cuffe Parade). With the advanced stages of Metro Line 4 development, major reputed developers have announced land acquisition or joint-ventures for mid to high-end segment residential projects along the Eastern Suburban corridor and expected to launch in near future. 

With now operational Mumbai Trans Harbour Link Road, the Navi Mumbai locations mainly Ulwe, Panvel and Kalamboli etc are on the brink for transformation into prime destination for mid segment projects. 

Quoted capital values continue to rise 

Rising number of re-development projects, particularly across the Western Suburbs Prime and Western Suburbs markets have added to the rental housing demand and continued to result in 5-6% growth in rental values from the previous quarter. The capital value witnessed about 3-6% across all sub markets from the previous quarters, on the back of strong progress in infrastructure projects. 

With improved connectivity offered by recent operational coastal roads and advanced stages of Metro Line 3 project is expected to further boost the capital value in South, South Central and parts of Western Suburbs.