Prime residential launches in Mumbai nearly tripled in Q2
Launches increased 192% to 3,044 units during the quarter.
A total of 3,044 units were launched in the high-end segment of Mumbai’s residential sector in 2Q22, an increase of 192.1% q-o-q and 187.7% y-o-y.
According to JLL, Eastern Suburbs I, Navi Mumbai and Western Suburbs I submarkets recorded significant growth in the number of new launches over the previous quarter.
Here’s more from JLL:
Navi Mumbai contributed the most to quarterly launches, with a 33.2% share, followed by Western Suburbs I submarket with a share of 23%. Some of the major projects launched in 2Q22 in the high-end segment were Arihant Aakarshan Phase 1 in Navi Mumbai and 72 Marina in the Western Suburbs I submarket.
Demand increases by 6.8% q-o-q
The demand for the high-end residential segment improved slightly in 2Q22, as buyers took advantage of buying apartments during the quarter, ahead of the expected price hike caused by the input material cost hike. The primary reason for the increase in price is due to increased cost of input materials, and a hike in ready reckoner rates.
Eastern Suburb I, Navi Mumbai and Thane together contributed to 57% of the overall sales in 2Q22. Improved market sentiments and increased appetite for bigger homes have led to sales growth in the high end segment in 2Q22.
Capital values increase slightly
Capital values increased slightly for the high-end residential market. Developers increased the capital values for select projects, due mainly to the rise in input material cost. The revision in ready reckoner rates and increased stamp duty charges have also led to the rise in the capital values.
Rents increased slightly in most submarkets during 2Q22, as the returning workforce caused a surge in demand for rental housing, thereby supporting rent increases.
Outlook: Market sentiment to remain healthy for remainder of 2022
The high-end residential market is likely to continue its momentum going forward, on the back of improved market sentiments and increasing appetite for bigger homes.
The cost of key raw materials such as steel, iron and cement will be a key influencing factor for a projected rise in capital values, as commodity prices are on an upswing and the current geopolitical volatility may also add to this uncertainty.
Note: Mumbai Residential refers to Mumbai's prime residential market.