By Varun Singh

The residential real estate industry in Mumbai is showing signs of recovery after a steep decline of 16% in Q2, exhibiting an increase in demand by 5% QoQ, revealed the latest Magicbricks PropIndex report for Q3 (Jul-Aug-Sept) 2021. Further, the aggregate supply in the city jumped by nearly 15% QoQ during the period.

The increase in demand is due to reduction in COVID-19 cases and the ongoing festive season. Further, several major developers such as Prestige Estate, Oberoi Realty and Sunteck Realty are expected to launch new projects in Mumbai. The rising demand along with the positive sentiment will further enable developers to avail benefits of the changing market dynamics and the government support.

Commenting on the PropIndex report, Sudhir Pai- CEO of Magicbricks, said, “With the onset of festive season, the market is further expected to grow. There is more clarity in minds of consumers who were earlier waiting to buy properties even as they waited for the pandemic to ease. Further, the increase in supply by developers has brought optimism in the Mumbai housing real estate market. Owing to high rents, 1-2BHKs garnered maximum share in demand in Mumbai real estate market..”

Price appreciation of 2%-3% was witnessed in under-construction properties across most price brackets during the quarter. The quarter also witnessed a continuation in trend, where the smaller sized apartments such as 1 and 2BHKs dominated the buyer preferences in Mumbai with 70% of the market share. The 1BHK configuration continued its upward trajectory as demand moved up from 24% in Q22021 to 29% in Q3 2021.

Malad continued to be the top hotspot for realty during the quarter ending September 2021. The region observed largest traction in terms of demand as well as supply during the period. 

Navi Mumbai and Thane witnessed spikes of 19% and 10.5% QoQ in demand respectively. The QoQ growth in demand was predominantly supported by the new supply in the market, which went up QoQ by 15% in Mumbai, 9% in Navi Mumbai and over 6% in Thane during the period.

The housing market in MMR is expected to pick up further due to the reduction in cases of COVID-19 and prominent developers are preparing for new launches in the mid and affordable segments.

Also Read: Vicky Kaushal rents a flat in Juhu, the deposit he paid can get you an awesome Home in Mumbai

The post Navi Mumbai sees more Housing Demand than Mumbai appeared first on Square Feat India.

By Varun Singh

CREDAI MCHI, in association with its Knowledge Partner CRE Matrix, today jointly unveiled the second edition of its research titled ‘MMR Housing Typology Report’, tracing the most pertinent homebuying trends of MMR residential real estate transactions since January 2017 – till date.

The research report shares a thorough and insightful micro-market analysis by dividing MMR into 8 key housing markets: CBD Mumbai, Central Mumbai, Central Suburbs, Western Suburbs, Eastern Suburbs, Thane, Raigad and Palghar.

With Mumbai one of the costliest property market in India with larger ticket sizes than anywhere else in the country, smaller houses (<2/2.5 BHK) in MMR remain consistently in demand – a trend that has continued for years.In Jan-Feb 2021 too, Rs 20,736 crores worth of houses were registered under the category, amounting to approximately 60% of the total value of properties sold in the same timeframe.

The key findings of the ‘MMR Housing Typology Report’:

– Central Business District (CBD)has witnessed a y-o-y growth (2020 as compared to 2019) in sales in terms of both number and value of units sold, despite year 2020 being a truncated year due to COVID-19. In Jan – Feb 2021, the >=4BHK category had the highest impact and share in terms of value of properties sold, with an average ticket size of Rs 13 crore.

– Central Mumbai region hashistorically witnessed majority ofsales (in value terms) coming from larger typologies. In Jan – Feb 2021too, >=4BHK category had the highest share in the value of units sold. In fact, the Rs 1,863 crore spent on 184 units in Central Mumbai is the highest amount observed across all of MMR.

– Central Suburbs is typology agnostic – as all types have contributed at least 15% in value terms in 2020. The highest contributor in terms of value of properties sold, though, was the 3/3.5 BHK category, at an average ticket size of Rs 3.6 crores. Eastern Suburbs, on the other hand, 2 – 3 BHK category had the highest impact (~60%) on value of properties sold, with an average ticket size of Rs 1.7 crore.Across Western Suburbs, <=2.5 BHK is the most popular category, contributing to over 84% of unit sales in 2020, a trend also witnessed in Jan-Feb 2021.

– Historically, while majority of sales in Thane have come from the 1/1.5 BHK segment, with an average ticket size of Rs. 30 lacs, but the 2/2.5 BHK category has emerged as the highest impact typology – contributing an avg. of 22% to units sold but 27% to total value sold.Moreover, the average unit price of 2/2.5 BHK typology in Thane has increased by 6% on a 3-Year CAGR basis to Rs. 54 Lakhs in 2020. Led by an increase in real estate development and enhancing infrastructure, we foresee a change in Thane’s buyer preferences in the future.

– In Raigad, the affordable segment market has witnessed almost 66% units being sold in Studio / 1 / 1.5 BHK segmentwith an average ticket size of Rs 27 lacs.

– Palghar has witnessed majority of sales happening in smaller typologies of 1/2 BHK segments, contributing 94% in number of units sold and 84% in total value sold in 2020. Going-forward, with Mumbai-Ahmedabad bullet train route passing through this region, it is likely to see an improvement in overall development and an increase in demand for larger typologies as well.

“We are extremely proud and delighted to unveil the second edition of CREDAI MCHI – CRE Matrix research report titled ‘MMR Housing Typology Report’. This report gives consumers an insight on housing typologies and trendsand also provides the developer fraternity a definitive course of strategic direction for future projects. With a new dawn of MMR real estate upon us, we look forward to partnering with industry stakeholders by facilitating an informed and knowledgeable real estate environment and making a decisive difference to enable Real Estate to lead the next chapter of growth for Mumbai and Maharashtra’s economy.”

CREDAI MCHI President, Deepak Goradia

Also Read: MMR Sold 4% More Homes in Jan-Sep 2020 Than It Did In Same Period OF 2018

The post MMR Homebuyers Prefer Smaller Homes: Report appeared first on Square Feat India.