Mumbai’s residential sector sees a boom

Mumbai’s residential sector witnessed launches of 22,368 units during the third quarter. On a quarter-on-quarter (q-o-q) basis, launches declined by 13% but recorded a growth of 45% on an annual basis. Thane, western suburbs and extended suburban submarkets had a combined share of almost 70% in total launches.

South Mumbai and Navi Mumbai submarkets saw higher launches as compared to the same period last year. Nearly 48% of the total launches were contributed by such prominent developers.

During the upcoming festive season, new launches and sales activity is expected to remain strong until the end of this year. The mid and high-end segments contributed almost 70% of new launches in the third quarter, with nearly 40% share coming from mid-segment alone.

The high-end segment launches witnessed a dip of 27% q-o-q while the luxury segment witnessed a considerable rise in its share mainly from launches in South Mumbai, South Central Mumbai and prime western suburbs.

This increase in luxury segment launches is attributed to increasing sales activity driven by buyers’ need for an upgrade in lifestyle.

Robust sales performance over the last three quarters has resulted in an increase in capital values. Quoted capital values have improved by 2-3% across all sub-markets on a quarterly basis.

Developers have been offering other incentives such as electric bikes, zero stamp duty, free parking etc as part of ongoing festive offers.

With work from office getting greater traction, rental values across the majority of sub-markets witnessed an uptrend of 4-5% on a q-o-q basis. This upward trend in capital and rental values is expected to continue in the near term.