Market Movers

Affordable housing takes centre stage

Salt pan lands near the Bhandup-Kanjurmarg area have been opened for developing nearly one lakh low-budget homes. Besides, CIDCO’s aim to sell 90,000 low-cost homes under its mega housing scheme and MHADA’s plan to revive its EWS project in Goregaon from the proceeds of its premium housing project proposed at Bandra are expected to bridge the demand-supply disparity of affordable housing across regions.

TOD paves the way for realty growth

The Mumbai Metropolitan Region Development Authority (MMRDA) plans to implement Transit Oriented Development (TOD) in the residential colonies of Versova and Kurla situated along the metro lines of 2A and 2B. The development would not only improve these areas’ accessibility to public transport but would also trigger residential and commercial expansion alongside.Corporation (TMC) also conducted structural audits of numerous bridges in its jurisdiction to ease the traffic situation.

Road projects remain the cynosure

While the Navi Mumbai Municipal Corporation (NMMC) inaugurated the three-lane flyover at the Central Business District (CBD) Belapur, the Brihanmumbai Municipal Corporation (BMC) zeroed in on the construction of 29 bridges along the various metro corridors in the city. Additionally, Thane Municipal Corporation (TMC) also conducted structural audits of numerous bridges in its jurisdiction to ease the traffic situation.

Metro expansion gains steam

With the completion of nearly 50 percent of work on the Metro Line 3, the stretch between Cuffe Parade and Aarey Depot is slated for completion by 2020. Additionally, the development on other ongoing metro corridors such as 2B, 4 and 6 also runs in full-swing and are likely to become functional soon.

NBFC crisis leads to JV developments

More than dozens of realtors in the city either forayed into slum rehabilitation projects or await Joint-Venture (JV) developments with reputed realtors as an aftermath of the Non-Banking Financial Companies (NBFC) crisis.


Big-ticket commercial leasing, infrastructure expansions and increased consumer affinity towards competitively priced housing units kept the city’s real estate market afloat in Apr-Jun 2019. While Mumbai witnessed a periodical drop in the sales volume, Thane and Navi Mumbai shored up the market sentiment. Across zones, average capital prices remained stable, QoQ; however, Navi Mumbai emerged as the star performer, recording a marginal one percent hike in the property values, QoQ.

Enquiries and site-visits grew by 25 percent in the quarter; however, rigid pricing strategy by developers kept a section of buyers at bay. Homebuyers awaiting a price correction in the offing deferred purchases and adopted a wait-and-watch approach.

New launches across budget segments dipped for the second consecutive quarter. The crisis faced by Non-banking Finance Companies (NBFC), coupled with Input Tax Credit (ITC) withdrawal, threw builders out of operations, impacting the overall new supply in the city. Many reputed builders even shifted their focus from residential to commercial segment.Increased incentives from the Government under ‘Make in India’ scheme coupled with faster loan approvals at attractive rates helped new players in establishing their footprints in the city.

Overall, the increasing debt woes, soaring Non-Profit Assets (NPAs), liquidity crunch and delayed project approvals jeopardised the builders’ survival in the residential sector. The Union-Budget 2019-20, however, featured some pro-growth policies that promise to turn the tides and revive the ailing market.

mumbai localities


Continuing last quarter’s growth trajectory, the housing sector of Navi Mumbai recorded a 30 percent increase in the yearly sales volume in Q1 2019-20. However, the residential market reeled under the weight of rising construction costs and limited cash circulation in the sector. Contrary to 1,900 units in the preceding quarter, only 1,200 new and resale housing units were added in Apr-Jun 2019.


Navi Mumbai recorded a modest one percent growth in the average capital prices, QoQ. Improved market sentiment due to increased commercial absorption, reduced GST rates, and infrastructure overhauls elicited realty momentum in over half of the tracked locales.

The NBFC crisis continued to be a concern for the developers. As the market grappled to come out of the woods, many project launches scheduled in June were deferred. Resultantly, the resale market ruled the roost for the third quarter in a row.

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Of the total units added in the quarter, nearly 800 units were primary additions and around 400 units comprised resale properties. The unsold stock in Navi Mumbai, as in June 2019, was around 12,500 units and the Quarters to Sell (QTS) stood at eight months.

nv 2Across locations, Kharghar and Taloja were the cynosures for the realtor community. While Kharghar saw an increase in supply of properties pegged between Rs 75 lakh and Rs 1.5 crore, Taloja witnessed majority supply priced around Rs 30 lakh.

Khopoli and Khanda Colony recorded maximum demand and clocked four percent growth in the average weighted capital ‘asks’, each, QoQ. While Khopoli’s proximity to Lonavala caught the fancy of second-time homebuyers, Khanda Colony in Kamothe gained steam owing to the increased supply of under-construction units from reputed builders.

Infrastructure developments such as the ongoing metro project between Khandeshwar and Taloja, and the upcoming airport at Panvel coupled with competitive property prices helped New Panvel and Taloja climb the popularity charts. Average weighted capital prices in New Panvel and Taloja were pegged at Rs 6,500 and Rs 5,300 per sq ft, respectively.

The rental market of Navi Mumbai remained robust in Apr-Jun 2019, recording a 15 percent growth in the annual rental enquiries and a four percent hike in the average rental values, YoY. While Kharghar and Taloja remained popular owing to their vicinity to commercial hubs of Commercial Business District (CBD) Belapur and MIDC, the plush locales of Palm Beach and Seawoods were favoured due to their high livability quotient. The average rental values in these areas surged by six percent, each, YoY.

Ulwe also emerged as one of the top grossers and recorded a five percent growth in the average rents, YoY. Direct rail connectivity from Ulwe to CBD Belapur and its contiguity to Panvel led to the rental trend in the pocket. Continuing last quarter’s growth trajectory, the housing sector of Navi Mumbai recorded a 30 percent increase in the yearly sales volume in Q1 2019-20. However, the residential market reeled under the weight of rising construction costs and limited cash circulation in the sector. Contrary to 1,900 units in the preceding quarter, only 1,200 new and resale housing units were added in Apr-Jun 2019.

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Thane’s residential market remained positive in Apr-Jun 2019 with a 15 percent growth in the quarterly sales volume. New launches also reported an uptrend. Close to 1,000 odd units were added in the quarter, of which, majority are in Majiwada and Kolshet Road. Unsold inventory in Thane stood at 17,500 units in the quarter ending June 2019


The housing market of Thane continued to grow at a steady pace, QoQ. Of the total listed localities, nearly 60 percent of the micro-markets reported a positive movement in their average capital prices in Apr-Jun 2019.

While 2 BHK units, replete with all modern conveniences, priced around Rs 1.2 crores witnessed increased enquiries, expectations of a price correction in the segment impacted conversions.


Balkum, a centrally-located micro-market, ruled the roost and recorded a three percent growth in the average property prices, QoQ. The availability of quality housing projects by eminent builders such as Lodha Group and Piramal Realty, and proximity to Kolshet Industrial Area and Eastern Express Highway (EEH) pushed housing demand and prices up.Here, 1 BHK and 2 BHK resale units priced at Rs 70-80 lakh and Rs 1-1.25 crore, respectively, witnessed improved demand.

t1Following suit, Owale and Anand Nagar also experienced improved popularity among homebuyers and catalogued a two percent quarterly hike in the ‘ask’ prices of residential apartments in Apr-Jun 2019 vs the previous quarter. Located across Hiranandani Estates, these micro-markets benefitted primarily due to comparative affordability to the posh locale. Average property values in these areas hovered between Rs 10,600 per sq ft and Rs 10,800 per sq ft vis-à-vis Rs 12,500 per sq ft in Hiranandani Estates.

In the areas beyond Thane, Vasind, Ambernath and Neral saw property prices going up by a marginal one percent, QoQ. The active under-construction sector offering 1 BHK units priced at Rs 20-30 lakh pushed housing sales up.

The rental market in Thane posted a growth of four percent in Apr-Jun 2019 against Apr-Jun 2018. Vasant Vihar, along the Pokharan Road 2, emerged as the prime choice of the tenant community and captured an eight percent hike in the rental values, YoY.

Among others, Ambernath, Dombivli East and Owale remained the soughtafter locales owing to their moderate rentals, sound social infrastructure and ample rental inventory. The micro-markets clocked six percent growth in their yearly rental prices, each.



Mumbai posted a 30 percent surge in property enquiries in Apr-Jun 2019; however, reduced conversions led to a 40 percent dip in the residential sales, QoQ. A humongous demand-supply mismatch is seen as a major growth dampener for the city's realty landscape. Nearly 45 percent of the market demand is for properties priced under Rs 60 lakh against just 20 percent supply.


Mumbai saw the addition of just 500 re-launched housing units in Apr-Jun 2019. However, taking note of the enormous unsold stock in the city, restricted new supply would help the developers to dispose of their current inventory.

Braving the odds, the average capital prices in the city maintained stability during the quarter. Ghatkopar (East) emerged as the ace performer for the second quarter in a row. Improved metro connectivity, proximity to Eastern Express Highway, and International Airport helped property prices in the area grow by five percent, QoQ.


Kanjurmarg (East) and Virar were other favourable pockets that witnessed capital growth of four percent, each, QoQ.While spillover demand from the ultra-residential pocket of Powai benefitted Kanjurmarg (East), competitive property prices attributed to the sustained popularity of Virar. Average capital values in Virar stood at around Rs 4,800 per sq ft.

mum1Availability of compact homes in the price bracket of Rs 30-50 lakh boosted demand in Vasai, Nallasopara, Naigaon and Palghar . Malad, Kandivali and Goregaon (East) also reported increased enquiries, though, primarily in the resale segment.

Despite discount offers and freebies on under-construction units, the ambiguity pertaining to timely completions in the wake of the liquidity crunch impacted demand adversely. Buyers instead shifted their attention to the resale market, which remained a viable option in the absence of GST on ready-to-move units and devaluation of properties by 20-25 percent.

Mumbai displayed a two percent hike in the average rental values, YoY. Vile Parle (East), close to numerous educational institutes and the Chhatrapati Shivaji International Airport, remained a popular choice amongst the tenant community. Average rents here grew by eight percent, YoY.

Rentals in Bandra (West) and Borivali (West) also surged by seven and six percent, respectively, YoY. While Bandra (West) owes its popularity to its plush ambience and nearness to the commercial hub of Bandra-Kurla Complex (BKC), the ongoing metro projects pushed the rental demand in Borivali (West). Two metro lines - Line 2 and Line 7 - are planned to pass through Borivali.