Residential property sales in Mumbai saw a rise during the last six months of 2015 due to a surge in demand across the city’s developing suburbs.
The top three cities of Mumbai, Bangalore and Delhi National Capital Region (NCR) attracted more than 65% of the total housing sales across the country’s leading cities during the second half of 2015.
In addition, Hyderabad and Mumbai noted an uptick in housing sales in the July to December 2015 period even as most other housing markets saw subdued sales. Residential property sales in Mumbai saw a rise during the last six months of 2015 due to a surge in demand across the city’s developing suburbs.
Mumbai also led new housing project launches during the second half of 2015, accounting for more than 35% share of the total supply of new housing units among leading cities.
Bangalore and Delhi NCR had a share of 28% and 11%, respectively, of the new property launches seen during the period across leading cities. Navi Mumbai and Central Mumbai, in particular, saw prominent residential project launches during H2 2015.
Despite its positive performance in comparison to other leading cities in the country in recent months, residential real estate activity in Mumbai continued to remain tepid across its micro-markets. While both supply and absorption activity improved marginally over that of the first six months of 2015, the prevalent high property prices kept back a broad based recovery in home buyer demand in the city.
Home buyer demand in the mid-end segment largely remained subdued, while premium / luxury projects across Altamount Road in South Mumbai, Worli in Central Mumbai, Bandra–Kurla Complex (BKC) and Khar (West) in the Western Suburbs continued to see strong demand. Various high value transactions by High Net-worth Individuals (HNIs) were concluded during the second half of 2015.
Residential neighborhoods of Borivali (West), Kandivali (West) and Goregaon (East) in the Extended Western Suburbs and Thane City saw close to 40% of the total residential units launched across the city during the second half of 2015. Navi Mumbai (nearly 16%), besides the Western and Eastern Suburbs (approximately 14%) remained among the other major micro-markets that witnessed the bulk of the city’s housing units launched during H2 2015.
The prevailing market sentiments ensured stable capital value across most micro-markets with a marginal uptick in select locations in the premium / luxury segment. Prominent project launches included Beaumonte at Sion by Sheth Creators (Central Mumbai), The Trees by Godrej Properties at Vikhroli (East), One India Bulls Park at Santacruz (Western Suburbs).
The extended suburban locations continued to witness healthy supply addition across the high-end and premium segment. Both Extended Western and Extended Eastern suburbs accounted for close to 27% of the new housing supply in Mumbai during the review period.
New project launches in the region included Acme Hills (A and B wings) by Acme Group at Goregaon (East) and Ruparel Elara (A and B wings) by Ruparel Realty at Kandivali (West). Navi Mumbai witnessed a marginal decline in new launches as compared to H1 2015. Project launches were largely concentrated in upcoming locations such as Ulwe, Taloja and Dronagiri.
Prominent launches included the phase two of Fortune City at Panvel by Hiranandani Developers. In Thane, the supply of units continued to remain upbeat as project launches by notable developers were observed across locations such as Pokran Road and Ghodbunder Road.
The overall prices of housing projects across localities in the premium / luxury and high-end / mid-end segments in Mumbai during H2 2015 largely remained stable over the first half of 2015. Similar to the pricing trend, home rentals too remained largely stable across all micro-markets during the period.
By: AS Sivaramakrishnan, Head-Residential Services, CBRE South Asia
