Mumbai, June 26th, 2023: Mumbai’s vibrant real estate market witnessed the highest number of new residential unit launches in the country during the first quarter of 2023, with the tally nearly doubling to reach a total of 60,000 units, as per the PropTiger Report.
The report by PropTiger.com, the country’s leading digital real estate brokerage company that is owned by REA India, the country’s largest full-stack real estate technology platform that also owns Housing.com & Makaan.com, stated that new launches increased across all top eight realty markets, with a total of 1,47,780 units being launched in Q1 2023, registering an all-time high quarterly level of new launches. When compared with the corresponding period, the new supply saw a commendable increase of 86 %, while surpassing the pre-RERA period.
If we talk about the top 3 markets in terms of new home launches, Mumbai was followed by Pune (35,480) and Hyderabad (17,930) in Q1 2023.
The majority of the new supply in Mumbai was concentrated in the micro-markets of Dombivli, Bhiwandi, and Vasai, showcasing the growth potential in these areas.
The average price in Mumbai during Q1 2023 (in Rs per square foot) was Rs 10,000-10,200, reflecting a 3 percent increase year-on-year.
With 40 percent of the units launched in the INR 25-45 lakh price bracket and an additional 23 percent falling in the INR 45-75 lakh price bracket, there is a wide range of options available for homebuyers.
“Mumbai’s real estate market has demonstrated its resilience and potential for tremendous growth with the highest number of new residential unit launches in the country during the first quarter of 2023. This remarkable achievement reflects positive market sentiments and reinforces the city’s position as the economic capital of India. With a diverse range of housing options, including affordable and mid-segment housing, the city attracts buyers from various price brackets. The strong demand for high-end properties further highlights Mumbai’s elite appeal. We anticipate a promising future for Mumbai’s real estate sector, driven by infrastructure development, government initiatives, and its position as a global financial hub” said Mr. Vikas Wadhawan, Group CFO, REA India & Business Head PropTiger.com
In addition to the surge in new supply, Mumbai also recorded a significant growth of 39 percent in sales during the first quarter of 2023. Homebuyers purchased 32,380 units, marking a positive trend compared to the same period in 2022. However, the growth in sales experienced a relatively marginal increase of only 3 percent QoQ in Q1 2023.
Mumbai’s dominance in the national sales tally continues, as it captures the highest share at 38 percent. Notably, Dombivali, Thane West, and Panvel emerged as the most preferred localities for homebuyers in Q1 2023, showcasing their attractiveness in the real estate market.
The report also reveals that 54 percent of the units sold in Q1 2023 were 1BHK configurations, followed closely by 2BHK with a 35 percent share. Furthermore, a significant percentage of sales, 27 percent, was recorded in the more than INR 1 crore price bracket
“Mumbai’s residential realty markets have been on an upswing post the pandemic, with the city leading in both new supply and sales across the top eight cities. The demand for properties has seen double-digit growth in the first quarter of 2023, surpassing the pre-RERA levels of 2015.
Our market analysis shows that most of the sales were concentrated in peripheral markets such as Thane West, Dombivli, Panvel, Vasai, and Virar. These trends indicate that the city will maintain a positive trajectory in the upcoming quarters driven by strong end-user demand”, explained Ankita Sood, Head of Research, PropTiger.com, Housing.com & Makaan.com.
On the inventory front, Mumbai takes the highest share, accounting for 36 percent of the total unsold inventory of 9.11 lakhs across the top-8 cities. The inventory overhang stood at 34 months at the end of Q1 2023, compared to 48 months during the same period the previous year.
The findings from the PropTiger report reflect the thriving real estate landscape in Mumbai, characterized by a substantial increase in new residential unit launches and sales figures.