Mumbai Residential Real Estate: Witnessing record sales across sub-markets and categories
In a nutshell
Being a muti-functional city, Mumbai remains the preferred city for realty investments in India
Record year:
India’s largest and the most expensive residential real estate market, Mumbai is in the midst of a record year –
- Property registrations cross the 1 lakh units for the first time in a decade during the first 10 months of this year (Jan-Oct 2022)
- Affordability (income to EMI ratio) is at the best it has ever been in the last 25 years
- Government revenue collection grew by 53% YoY to INR 7,300 crores, again the highest in the last 10 years
- Unsold inventory down to a healthy 20 months from peak of 40+ months in 2017
- Capital and rental values witnessing an uptrend after a long flat / down period
Affordability ratio at its best since 1998:
Rising income levels along with flat property prices and reasonable home loan rates (even after the recent increases, the rates continue to remain significantly below previous cycle peak) have led to the best affordability since 1998. This improvement in affordability and the structural nature of residential demand has helped fuel home sales.
Affordability: Monthly Income to EMI Ratio (Lower is better)
Consistent High Absorption | Inventory levels down to a healthy 20 months
MMR: Quarterly Sales Absorption MMR: Unsold Inventory
Consistent high absorption over the last 12 -18 months has led to a significant reduction in inventory levels. Capital values and rental values have gone up in select micro-markets eg. South Central Mumbai. The recent increases in home loan rates by ~190 bps have not impacted volumes / sentiment so far as absolute levels (~8.5%) remain reasonable, though this remains a headwind and will likely moderate volumes going forward.
South Central Mumbai | Prime & Plush
South Central Mumbai is emerging as one of the most sought after locations in MMR. Availability of large tracts of land (erstwhile mill lands), has led to transformation of this region in to a new office district, entertainment hub and highly sought after residential destination with availability of high quality residential developments across segments (from mid / upper mid-market to luxury). Last 12 months have seen very good sales across these market segments
South Central Mumbai: Last 12 month sales across select projects
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