· Total sales of residential real estate in Mumbai jumps 37% in 2022 as compared to 2021
· The share of mid segment homes (ticket price Rs. 1-2 Crores) are highest in new supply and sales in calendar year of 2022
Mumbai has seen the highest residential property sales in the calendar year 2022 as compared to the last five years. The total sales of residential real estate in the city stood at 51,390 units in 2022, up 37% as against the previous year, according to a report by leading real estate data and Analytics Company, PropEquity.
Maximum absorption of homes was seen in western suburban region of Mumbai city. The demand has outweighed new launches in the last five years even as the interest rates and home loans started to head northwards in 2022.
In terms of new launches, the city witnessed 26% jump in 2022 at 46,900 units as compared to the preceding year. The inventory overhand stood at 14 months at the end of 2022 on the basis of the current rates of sales of properties.
The share of mid-segment (with ticket price of Rs 1-2 crore) units was the largest in both new launch and sales categories. Most of the home buyers were seen inclined more towards mid-segment housing in Mumbai.
The share of the ‘Affordable’ segment of house stood at 28% and that of ‘Luxury’ segment was 26% among the new launches. As far as sales are concerned, the share of the ‘Affordable’ category of homes stood at 27% and that of ‘Luxury’ segment was 28%.
“Mumbai has seen its highest levels of home sales in 2022 when compared to the last five years even as the home loans were becoming more expensive. This speaks of the resilience of the property market in the financial capital of the country. The real estate market in the city is expected to thrive in the near future on the back of dynamic new offerings from the real estate companies and huge appetite among the customers. New benchmarks are being written in the property market of Mumbai which augers well, not just for the city, but for the industry as whole across the country” said Samir Jasuja, Founder and Managing Director at PropEquity.
“Mumbai has always been a key market for us, and the customer’s confidence is a reflection of the increasing demand for sustainable and integrated developments by reputed developers. And as evidenced by the report, the city has achieved its highest home sales in the last five years. This reflects the growing confidence of homebuyers in the city’s economic potential and underscores the city’s status as a prime destination for real estate investment.” said Shiwang Suraj, Founder & Director of InfraMantra.
The weighted average price of the homes sold in 2022 has increased by 2% at Rs 19,092 per square feet as compared to last year. The average price of new launches in 2022 has moved up by 3% at Rs 17,922 per square feet as compared to the previous year. There are several reasons for sustained growth in the prices of residential properties in Mumbai like constant influx of people in the city from other parts of the country and scarcity of vacant land parcels for green field development.