Mumbai property demand grew at fastest pace in 2022 amongst the top cities of India

Mumbai, known as India’s financial capital, is the capital city of the state of Maharashtra. Excellent regional and international connectivity through airports, railways, roadways, ports, and infrastructure developments have attracted many manufacturing and service sector industries and the migrant workforce from all over India, to Mumbai in the past decades.

While most commercial activity is concentrated in Mumbai city, the increasing population, lack of space and consequent high capital values, have seen the growth of residential activity and demand in the peripheral areas of Thane, Navi Mumbai, Kalyan-Dombivli, Vasai-Virar, etc., due to their affordability. These localities are also the part of the Mumbai Metropolitan Region (MMR), which comprises Mumbai City, Mumbai Suburban, Thane, Palghar and Raigad district.

The need of the workforce residing in the neighbouring cities, to commute to the island city has put tremendous pressure on the existing roadways and railways infrastructure. Similarly, the current Chhatrapati Shivaji Maharaj International Airport, which saw an annual passenger traffic of nearly 50 million in 2019, has already reached its annual handling capacity. Moreover, Mumbai is among the top 50 cities globally which will see the most significant increase in population, by 2030.

In view of the increasing population, several major transport infrastructure projects such as the metro rail, the Mumbai Trans Harbour Link and the Versova Vasai Sea Link, have been announced in the recent years to enhance the connectivity within the micro markets across the MMR. A new international airport development is also underway in Navi Mumbai, which has been developed as a secondary business district to decongest the central business districts in Mumbai. Such infrastructure development is opening up the potential of landbanks across the MMR making way for more commercial and residential development in the region. It currently is the largest property market amongst the top cities of India.

While, the Mumbai and its metropolitan region witnessed a pandemic induced lull in the past two years it continue to take the highest share in both supply and demand across the major cities. Residential realty has registered a steady upward trend post dipping to an all-time low during the second wave of the pandemic in Q2 2021. The mellowing of coronavirus cases and relaxation of mask mandates has lent optimism to consumer sentiments as buyers are searching for homes without any hindrances. Moreover, the ongoing festive season, coupled with developer schemes and discounts, is acting as added thrust to the residential demand in the region.

The latest property market trends in the city suggest the following:

Mumbai and its metropolitan region (MMR) recorded a robust growth of 282 per cent in the new supply in 2022, with 1,65,634 units launched, surpassing the pre-RERA and pre-pandemic levels.
The majority (28 per cent) of the new supply was concentrated in the INR 45-75 lakh price range, closely followed by the INR 1-3 crore lakh, which took a share of 25 per cent each in the overall supply tally. Developer focus remained on the 1 BHK configuration, which accounted for 50 per cent of the new launches.
Maximum new launches were in the micro localities of Dombivli, Thane West, Panvel, Mira Road East and Virar, which took a combined share of 29 per cent in overall new supply.
Residential sales in Mumbai MMR grew at a much quicker pace of 87 per cent as compared to 2021, with 1,09,677 units sold. Mumbai continues to take the first spot in the national sales tally.
The sales in the region are driven by strong end-user demand and the presence of notable developers in the peripheral micro-markets such as Thane West, Dombivli, Panvel, Virar, and Mira Road East.
Properties priced between INR 1-3 crore saw maximum (24 per cent) traction, followed by less than INR 25 lakh price bracket, which accounted for 23 per cent in the yearly tally.
1BHK was the preferred configuration amongst the homebuyers, taking the highest share of 52 per cent in the overall sales.
Mumbai holds the largest unsold stock in the top eight cities, taking a share of 34 per cent. The unsold inventory, which stood at 3,04,772 units at the end of 2022, registered a growth of 22 per cent.
As the sales velocity is gathering momentum, the inventory overhang has declined to 33 months at the end of 2022, compared to 51 months in the same period the previous year.
Mumbai witnessed robust residential market activity in 2022, with minimal to no restrictions on movement and active vaccination campaigns, thus buoying the continuity of economic activities as evident from the property registrations reaching a new record high in 2022 despite a lack of market stimuli such as stamp duty cuts coupled with rising interest rates.
Mumbai and its metropolitan region (MMR) recorded a massive growth of 282 per cent in the new supply in 2022, with 1,65,634 units launched, surpassing the pre-RERA and pre-pandemic levels.
The majority (28 per cent) of the new supply was concentrated in the INR 45-75 lakh price range, closely followed by the INR 1-3 crore lakh, which took a share of 25 per cent each in the overall supply tally. Developer focus remained on the 1 BHK configuration, which accounted for 50 per cent of the new launches.
Maximum new launches were in the micro localities of Dombivli, Thane West, Panvel, Mira Road East and Virar, which took a combined share of 29 per cent in overall new supply.
Residential sales in Mumbai MMR grew at a much quicker pace of 87 per cent as compared to 2021, with 1,09,677 units sold. Mumbai continues to take the first spot in the national sales tally.
The sales in the region are driven by strong end-user demand and the presence of notable developers in the peripheral micro-markets such as Thane West, Dombivli, Panvel, Virar, and Mira Road East.
Properties priced between INR 1-3 crore saw maximum (24 per cent) traction, followed by less than INR 25 lakh price bracket, which accounted for 23 per cent in the yearly tally.
1BHK was the preferred configuration amongst the homebuyers, taking the highest share of 52 per cent in the overall sales.
Mumbai holds the largest unsold stock in the top eight cities, taking a share of 34 per cent. The unsold inventory, which stood at 3,04,772 units at the end of 2022, registered a growth of 22 per cent.
As the sales velocity is gathering momentum, the inventory overhang has declined to 33 months at the end of 2022, compared to 51 months in the same period the previous year.

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Renuka Kulkarni - Research Desk

Renuka Kulkarni, a seasoned real estate professional, brings over five years of diverse experience in research, consulting, and architectural design within the urban sector. Her expertise spans public and private projects, showcasing proficiency in real estate research, trend interpretation, and policy analysis. With qualifications in architecture and a master’s degree in Data Science (Business Intelligence & Data Analytics) from IIIT Bengaluru, along with an M. Tech in Urban Development and Management from TERI School of Advanced Studies, New Delhi, Renuka seamlessly blends data analytics with market insights, offering a holistic understanding of the industry in her research pieces.

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