Mumbai, Thane and Navi Mumbai Real Estate Update: 70% drop in quarterly property sales volume, says 99acres.com
99acres.com, the leading property site in India, released Realty Outlook 2020 for residential and rental properties in Mumbai, Navi Mumbai and Thane for AMJ 20
Residential- Over two months of lockdown, unchanged circle rates and job losses collectively impacted the home buying sentiment in Mumbai in Apr-Jun 2020. While enquiries gradually increased to about 50 percent of the pre-COVID-19 times at the end of June 2020, sales remained low key. The city witnessed an over 70 percent drop in the quarterly property sales volume.
The crisis posing threat to the financial stability of potential homebuyers altered their residential preferences. End users planning to buy 2 BHK units inclined towards 1 BHK configurations to cut down on their budget. Nearly 60 percent of the demand in Mulund, Dombivli, Powai, Boisar and Andheri was noted for 1 BHK units priced within Rs 70-80 lakh. Ready homes in Goregaon, Malad and Kandivali, and Southern pockets of Lower Parel, Worli, Byculla and Parel witnessed increased enquiries in Rs 1-2 crore and Rs 3-5 crore budget brackets, respectively. However, exorbitant prices suppressed property transactions in the above area.
Technology disruption took the industry by storm. From generating enquiries to e-site visits and last-mile delivery, builders massively relied on technology to market their projects. The average capital values across Mumbai, Thane and Navi Mumbai remained stable, QoQ. However, rental prices reeled under pressure due to the limited supply of ready homes in the city and restriction from residential societies towards relocation.
Rentals- Average rentals in Mumbai remained stable, YoY. Juhu, Ghatkopar East and Bandra East dominated the popularity charts with 8-9 percent hike in the rental rates, YoY. While Bandra East, between the famous business district of BKC and South Mu
Residential: The residential market in Navi Mumbai gradually gained momentum in Q1 2020-21. While April remained dented with negligible sales, May and June witnessed a slow rebound. Close to 300 new units were sold during the quarter.
Taloja and Panvel remained popular for homes priced within Rs 30-50 lakh, Kharghar gained traction for units priced between Rs 85 lakh and Rs 1.10 crore. New launches in Navi Mumbai came to a standstill in Apr-Jun 2020. Barely three new projects were added by Category C developers in Rs 25-45 lakh budget. Most of the Grade A and B builders continued to defer their expansion plans. By the virtue of strategic location and the availability of ample residential projects, a few micro-markets such as Dronagiri, Vashi and Palm Beach remained popular among home buyers.
At the end of Apr-Jun 2020, Navi Mumbai stands with an unsold housing stock of around 25,000 units, which would need about 12 Quarters to Sell (QTS) completely. Ghansoli, Panvel, Airoli and Kamothe constituted about 70 percent of the total unsold inventory in the city.
Rental: The average yearly rents in Navi Mumbai grew by three percent. Ulwe, Nerul, and Seawoods attracted the tenant community throughout the year. Nerul and Ulwe derive their popularity from their proximity to CBD Belapur and relatively lower rentals, i.e. approximately Rs 9,000 per month for a 1,000 sq ft apartment.
Thane & Beyond
Residential- Amid the increasing cases of COVID-19, potential home buyers unsure of the turnout of events remained at bay in Thane in Q1 2020-21. Barely 350 units were sold in the studied period, amounting to a 70 percent dip in transactions, QoQ. Ghodbunder Road accounted for the maximum traction in mid-sized configurations pegged at Rs 65 lakh to Rs 1 crore. Kalyan, Dombivli, Badlapur and Ambernath continued to be popular among price-cautious buyers. A mere 150 units were added in Thane in Apr-Jun 2020, and the majority of them were by Category C developers in Ambernath, Kalher Kasheli, and Badlapur.
Unsold inventory in Thane remained unchanged at 27,000 units in the quarter ending June 2020. The QTS to dispose of the current residential stock stands at 14. Kolshet Road, Ghodbunder Road, Kasarvadavali, and Shilphata held nearly 70 percent of the unsold stock.
Residential projects across Patlipada along the Ghodbunder Road posted maximum enquiries from home buyers. The presence of reputed builders such as Kalpataru, Signature Global and Cosmos Group, among others, and the availability of RERA-registered projects continue to be the growth stimulators for these housing belts.
Rental: Average rents in Thane declined marginally, YoY. Nevertheless, Majiwada and Manpada emerged as the frontrunners and recorded a four percent hike in annual rents, each. Seamless connectivity via Kapurbawadi Railway Junction, access to high-street markets, and demand-supply disequilibrium boosted the rentals in these centrally-located markets. Kasarvadavali also reported a growth of three percent in yearly rentals due to the availability of newly constructed homes with added amenities, and contiguity to the warehousing hub of Bhiwandi.