Between 30 and 35 per cent of new housing launches in the Mumbai Metropolitan Region (MMR) have been in its emerging suburbs, states a report by ANAROCK Property Consultants. The MMR’s western and central peripheral regions, have witnessed more than 90 per cent of the launches within the affordable and mid-segment, priced at less than Rs 80 lakhs, the report said. This shift underscores a major evolutionary change in Mumbai’s real estate market, which was in previous years dominated by high-end and luxury housing. Overall, since 2013, nearly 54 per cent of the supply in the MMR came in the sub-Rs 80 lakhs category, with the remaining additions falling in the categories above Rs 80 lakhs.
“Over the last few decades, the city has evolved from an industrial hub to a service sector-driven destination. Mumbai has witnessed rapid development and seen expansion of its limits with all the industries slowly and gradually moving to the adjoining areas of Greater Mumbai. Rapid agglomeration led to the expansion of Greater Mumbai to Mumbai Metropolitan Region (MMR) which houses Greater Mumbai, Navi Mumbai, Thane city and the two peripheries, namely, western peripheral suburbs and central peripheral suburbs. The MMR is one of the biggest real estate markets in India. It contributes nearly 25 per cent of the overall supply across the top seven cities. Varied developments across all real estate categories ranging from affordable to ultra-luxury, make the MMR stand out from the rest, as far as real estate developments across the country is concerned. Amidst the transforming real estate sector in the MMR, developers are moving north and east, to cater to the rising demand and thus, peripheral suburbs are emerging as the most prominent destinations where affordability is high and the dream of owning a house can easily be turned into a reality” said Anuj Puri, chairman, ANAROCK Property Consultants.
“This report clearly illustrates how rising property prices in Greater Mumbai, are leading to a natural housing demand progression towards the peripheral areas. While Mumbai’s share in overall launches in the MMR declined from 71 per cent in 2013 to 67 per cent in first three quarters of 2018, Navi Mumbai has witnessed an increase in share, from nine per cent to 17 per cent. Due to the expansion of city limits from Greater Mumbai to the peripheries, more than 1.8 lakh units since 2013, have been launched in the western and central peripheral regions,” Puri added.
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As of Q3 2018, nearly 0.2 million units remained unsold in the region. The MMR accounted for around 37 per cent of the overall unsold units across the top seven cities in India. Unsold inventory in the MMR witnessed a growth of nearly 56 per cent till the end of Q3 2018 over 2013. Aggressive launches between 2013 and 2015, have added to the unsold stock. However, after 2015, with restricted launches and stable absorption rates, the market reversed its trend and the unsold stock has started to decline.
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Report highlights:
- The majority of unsold stock in the MMR, is in Mumbai and its peripheral areas. Thane city and Navi Mumbai account for nearly one-third of the unsold stock in the region – a fairly steady trend over the past five years.
- With 15-20 per cent of the overall supply in the MMR, Navi Mumbai has clocked the highest price appreciation during the past five years.
- Since 2013, nearly 1.8 lakh units were launched in the MMR’s western and central peripheral, accounting for nearly one-third of the overall launches.
- Unsold stock in central suburbs increased from 20,600 units during 2013 to 34,400 units by the end of Q3 2018.
- Unsold stock in the western peripheral suburbs declined by nearly 32 per cent till Q3 2018 since 2013.