Unlocking Mumbai's Homebuyer Choices: What Are They Purchasing in 2023?

Mumbai continues to hold a dominant position amongst the key eight cities of the country, accounting for the highest share of 38 percent in the total sales tally. Mumbai’s judicious mix of economic opportunities, diverse housing options and connectivity makes it a preferred choice among homebuyers and investors. Essentially, its reputation as a city that offers a vibrant urban lifestyle as well as a strong growth potential, sets it as a prime destination for real estate investment and home ownership.

Promising Sales Growth

The sales figures for Mumbai’s residential market indicate a fair growth with sales increasing by 16 percent Year-on-Year in Q2 2023. Additionally, there was a substantial semi-annual growth of 27 percent in residential sales in the first half of 2023 when compared to the same period in 2022. This upward trajectory signifies a steady demand and positive sentiment among homebuyers and investors.

Mumbai’s residential sales had surged to 109,680 units in 2022, surpassing pre-pandemic 2019 levels, and underscoring the rebounding confidence in the city’s residential market.

What are the preferred localities?

Certain localities have garnered more attention from homebuyers – Dombivli, Thane West, and Panvel emerging as the most preferred areas in Q2 2023. These neighbourhoods are favoured for their strategic locations, connectivity, and the availability of modern amenities. They offer a balanced blend of urban conveniences and green spaces, catering to the aspirations of homebuyers.

Dombivli’s accessibility, Thane West’s well-established infrastructure, and Panvel’s strong real estate potential contribute to their appeal. Proximity to commercial hubs, educational institutions, healthcare facilities, and transportation networks enhances the convenience factor.

Additionally, the promise of future growth, upcoming infrastructural projects, and the availability of diverse housing options make these areas enticing prospects for those seeking quality living experiences in Mumbai. While weighted average residential prices in Thane West hover around INR 10,900-11,100/sqft, Dombivli and Panvel have prices quoted at about INR 6,500-6,700/sqft and INR6,200-6,400/sqft respectively.

Configuration and Price Bracket Dynamics

Comprehending the unit configurations preferred by homebuyers is a fundamental aspect of real estate decision-making as it influences pricing, customer satisfaction, and overall market health, shaping the trajectory of urban living.

In Q2 2023, 53 percent of the units sold were of the 1BHK configuration, followed closely by 2BHK units with a 35 percent share. This indicates a demand for compact yet comfortable living spaces that cater to various household sizes and budget preferences.

Not surprisingly, a significant 44 percent of the sales were recorded in the price bracket of less than INR 45 lakh, given that the sale of 1 BHK apartments accounted for the majority share in total sales. A similar trend was observed in the previous year 2022, with 45 per cent of the total sales noted towards homes in the ticket size range of INR 45 lakh and below. Although notably homes in the price bracket of INR 1 Crore and above accounted for 28 per cent of the total sales.

Conclusion: Navigating Trends for Success

Mumbai's residential market continues to evolve with steady growth. The city's role as a leading contributor to the national sales tally underscores its enduring appeal. With emerging buyer preferences, developers and stakeholders can leverage these insights to tailor their offerings and strategies to meet the changing demands of the market. Thus, as Mumbai's real estate landscape poise itself for further expansion, those attuned to these trends are likely to make informed decisions, contributing to the city's ongoing development.

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