Mumbai Insite Report Jan-Mar 2019


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Market Movers

Road projects receive a major thrust

Multiple road project announcements such as elevated road from Lokhandwala to Lagoon Road, Kharghar-Belapur Coastal Road, highway projects such as Vadape-Thane bypass of NH3 and four-lane road expansions to connect Shahpur, Murbad, Karjat and Khopoli are set to bolster the city’s real estate growth.

Affordable housing gets a big boost

The decisions to eliminate property tax on homes measuring up to 500 sq ft within the jurisdiction of Brihanmumbai Municipal Corporation (BMC), and to slash property tax by 60 percent for units sized up to 700 sq ft are anticipated to further trigger housing demand in the affordable segment.

Metro expansion gains steam

Thane Municipal Corporation’s (TMCs) approval to an intra-city metro project that will connect Wadala to Dongripada bodes well for housing locales falling along the project. The stretch will further connect to Mumbai’s Metro line 5 that runs along Thane, Bhiwandi and Kalyan. In addition to new rail expansions, work on metro links in different stages of construction including DN Nagar to Dahisar, Andheri to Kanjurmarg and Wadala to Jacob Circle has also been expedited.

Hike in stamp duty rate

The increase in stamp duty from five to six percent starting February 2019 might impact the demand for ready-to-move units adversely. The additional charge is estimated to generate close to Rs 1,000 crore of revenue that would be utilised towards the development of infrastructure projects such as metro corridors and Versova-Bandra Sea Link (VSBL). It will also spike the cost of owning a property in the city.

Transit Oriented Development (TOD) on the cards

The Mumbai Metropolitan Region Development Authority (MMRDA) plans to undertake TOD along the four under-construction metro corridors in and around Mumbai. The move would comprise residential developments and a common business hub for the Metro corridors including 2A, 4, 6 and 7.


Mumbai’s real estate market continued to grow at a uniform pace in Jan-Mar 2019. Despite the headwinds such as stamp duty hike and ambiguities pertaining to Goods and Services Tax (GST), residential launches in the city witnessed marked improvement against the previous few quarters. Thane emerged as the ace performer with a two percent growth in average capital ‘asks’ and bagged maximum supply of new and re-launched housing units, followed by Navi Mumbai and Mumbai.

Availability of competitively priced housing projects nearing completion buoyed homebuying sentiment in the city. However, sluggish demand in the luxury housing segment continued to be a growth deterrent. Primarily driven by end-users, Mumbai’s residential landscape has been benefitting from commercial expansions, fast-paced infrastructure developments and increased supply of compact-sized housing units. The trend is expected to continue in the new financial year.

The city is going to see around 8-10 new project launches around the auspicious festivals of Gudi Padwa and Akshay Tritiya in April. This, coupled with more clarity around the revised GST rates, is expected to drive housing demand further up. The General Elections starting from April 11, however, might impact site visits and sales this quarter.



Rapid infrastructure developments, reduced tax burden under the revised GST regime and improved supply of preferred housing units elicited a 30 percent growth in the yearly sales volume of Navi Mumbai in Jan-Mar 2019. Close to 1500 housing units were sold in the quarter. However, new launches in the city reeled under tremendous pressure with the addition of only 1,900 new units to the existing supply of residential apartments.


The residential market of Navi Mumbai grew at a steady pace and posted a marginal one percent hike in the average capital prices, QoQ. Over 70 percent of the listed locales registered an uptrend in average property values in Jan-Mar 2019, compared to the preceding quarter.

Steady sales and restricted new launches had a significant bearing on the unsold inventory and the existing Quarters to Sell (QTS) residential stock. As of the quarter ending March, unsold stock in the city was 12,500 units, and QTS stood at eight.

Contrary to Thane, under-construction units remained the most preferred in Navi Mumbai. Mid-sized 2 BHK configurations pegged between Rs 75 lakh and Rs 1 crore witnessed more enquiries and conversions than other budget categories.

Panvel, Ulwe, Dronagiri and Kharghar reported maximum new supply and property registrations in the quarter. Panvel’s growing popularity among builders and buyers contributed to a five percent appreciation in average property prices. Following suit, others pockets also reported a three percent hike in the average weighted capital ‘asks’, QoQ.


Mumbai-3While Panvel and Ulwe benefitted from the proposed Navi Mumbai International Airport, an influx of reputed developers and suburban rail expansion; Kharghar remained popular owing to its proximity to Sion-Panvel Highway and Taloja MIDC that comprises several medium to small scale industries. Besides, the proposed Phase I of the Navi Mumbai’s metro corridor from Belapur to Pendhar via Kharghar will also benefit real estate around. Luxury market remained sluggish as limited uptake in the premium category led to a price correction in the segment.

The rental values in Navi Mumbai increased by four percent, YoY. Ulwe topped the charts for the second quarter in a row and witnessed a seven percent hike in the annual rentals. Improved rail connectivity, vicinity to the Central Business District (CBD) Belapur, and competitive rental pricing steered the area’s popularity amongst the tenant community.

Amongst others, Kharghar, and Nerul remained the most-favoured rental hotspots in the city and clocked a six percent hike in rentals, each, YoY. While proximity to the industrial hub of MIDC drove rental demand in Kharghar, contiguity to premium locales of Vashi and Seawoods spurred rental growth in Nerul.




Thane’s residential market remained upbeat in Jan-Mar 2019 with a fifteen percent growth in the sales volume vis-à-vis Oct-Dec 2018. The market remained resilient to the forthcoming General Elections. New launches improved with over 2,000 new units being added to the market in the quarter. Majority launches here restricted to popular locations such as Ghodbunder Road and Pokhran Road.



Competitively priced housing units (within Rs 50 lakh) in the far-flung areas of the city remained largely popular amidst the homebuyer community. For instance, Vasind, home to various small and medium scale industries, topped the popularity charts with five percent growth in the average weighted capital ‘asks’ in Jan-Mar 2019. Following suit, Titwala and Neral also recorded a four percent hike in the average weighted capital prices, each, QoQ.

Unlike the previous quarter, properties pegged between Rs 70 lakh and Rs 1.5 crore captured homebuyers’ interest, too. The segment bagged maximum sales in Thane this quarter. Precisely, branded products offering premium construction quality, ample amenities and convenient payment plans magnetised homebuyers.

Ghodbunder Road and Pokhran Road 2 witnessed maximum new launches in the quarter ending March 2019. However, the ambiguity about the revised GST regime and impending elections left developers with no other choice but to defer their project announcements until the market resumes stability.


Mumbai-11The resale market continued to grapple for buyers for the third consecutive year. Despite sellers devaluing their properties by 5-10 percent, homebuyers remained at bay. Majority of the homebuyers were drawn towards newly delivered, ready units. Such flats not only offered additional amenities but also ensured timely possession, which remained doubtful in the case of under-construction units.

In the rental landscape, Anand Nagar emerged as the frontrunner with six percent growth in the average rental rates, YoY. Located along the Ghodbunder Road, the micro-market lies in proximity to academic and financial institutions which make it a popular rental destination amidst student and working community. The popular Hiranandani Estate is also located nearby (3 km), ensuring easy access to a pool of facilities in the vicinity.

Majiwada, a saturated micro-market in central Thane, also posted two percent growth in rental values, YoY. The area is replete with residential opportunities, banks, colleges and numerous other essential amenities. Average weighted rental prices in Majiwada stood at Rs 24 per sq ft in Jan-Mar 2019.




Mumbai’s real estate market witnessed unwavering growth in residential enquiries and project launches in Jan-Mar 2019. Close to 800 units in new and re-launched projects were added to the market. Housing sales also reported a six percent growth, QoQ. Mid-sized configurations priced between Rs 1 crore and Rs 1.8 crore remained the most-preferred category by the homebuyer community.


Homebuyers’ growing preference for compact units impacted residential launches in Mumbai in Jan-Mar 2019. Maximum launches
announced during the period restricted to 1 BHK and 2 BHK units with the carpet size of 300-400 sq ft and 600-700 sq ft, respectively.

However, the latter remained the prime focus of the developers. Inventory overhang dipped by 3-5 percent, QoQ. Taking note of the sales volume and new projects added during the period, unsold inventory stood at around 2 lakh units in MMR at the end of March 2019.

The resale market remained robust in the southern and western zones and captured 55 percent of the total sales volume. Housing belts which saw healthy traction in the secondary market included Bandra-Kurla Complex (BKC), Malad, Kandivali and Borivali. Increased Returns on Investment (ROI) on the previous property acquisitions, vicinity to workplaces and the desire to reside in the premium locales of the city attributed to the trend.

Kandivali, Mulund, Parel and Dadar remained the preferred choice of Mid-Income group (MIG) buyers. Compact-sized homes by reputed builders coupled with various marketing strategies set the realty tone in the micro-markets. Average weighted capital ‘asks’ in the locales ranged between Rs 16,500 per sq ft and Rs 32,000 per sq ft in Jan-Mar 2019.



Mumbai-21Ghatkopar in the East also emerged as a sought-after housing destination and recorded a five percent growth in property ‘asks’, QoQ. Proximity to Eastern Express Highway (15 km), Versova-Andheri-Ghatkopar Metro Corridor, and International Airport (8 km) along with various commercial and retail expansions contributed to the area’s popularity. Following suit, Colaba, Mahim (West) and Lower Parel also reported 3-4 percent hike in the average weighted apartment prices, QoQ.

In the rental landscape, Tilak Nagar aced the popularity charts and captured seven percent growth in rental 'asks', YoY. Budding locales such as Nallasopara and Virar were also favoured by the tenant community and witnessed a six
percent hike in the yearly average weighted rentals, each.

While Tilak Nagar garnered tenants ‘attention on the back of its nearness to the Chembur Flyover, Bandra-Kurla Complex (BKC), and the presence of a host of commercial centres and banking institutions, Virar and Nallasopara gained prominence owing to their competitively priced rental stock. Despite the hike as mentioned above, the average annual rentals in Nallasopara and Virar remained as low as Rs 9 per sq ft.


Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

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