Property enquiries in Mumbai surged by 20 percent, QoQ, whereas sales took a downturn majorly owing to the withdrawal of end-users from the market. High ticket sizes, coupled with limited choices and unappetizing offers, kept buyers away from transacting.
A few micro-markets such as Mira Road and beyond, Ghodbunder Road, Taloja, Ulwe, Vashi, Kharghar, Kandivali, Malad and Panvel remained popular amid the builder-buyer community. Improved supply of affordable and mid-income segment units accompanied by the clearances on pending connectivity projects in Bandra and Kandivali and the western suburbs of Lokhandwala and Malad spurred sales in these pockets.
Navi Mumbai outperformed other zones with a two percent hike in the average property prices. Buyer inertia remained a bigger challenge in Thane and Mumbai. Nevertheless, developers pinned their hopes on the upcoming festive period. Furthermore, the State government’s plan to adopt the Dual Model Tenancy Law might also boost the overall market sentiment.
CIDCO’s approval for 90,000 units across the Economically Weaker Section (EWS) and Middle-income Group (MIG) segments is also anticipated to improve the market dynamics as over 60 percent housing demand falls in these budget categories. Commercial expansion also bodes well with the reduction in the corporate tax and the upcoming Central Business District at Wadala.
The average property prices in Navi Mumbai grew by two percent, QoQ. Steady demand for ready-to-move units helped the city register a 15 percent growth in quarterly sales volume.
New Panvel, Kharghar and Vashi significantly contributed to the total demand and posted a 3-4 percent hike in the average weighted capital ‘asks’, each, QoQ. Proximity to the Central Business District of Belapur and comparative affordability to Palm Beach and Seawoods led Kharghar and New Panvel emerge as hot favourites. The ongoing Belapur-Pendhar metro project and revival of the long-delayed Navi Mumbai International Airport are also seen as growth stimulators for the regions.
About 3,500 new and resale units were added to Navi
Mumbai residential market in Jul-Sep 2019. Noticeably, with several reputed builders foraying into the low-cost segment, affordable housing ruled the roost. While Ulwe, Taloja and Dronagiri stayed famous among Category B and C developers, Kharghar, and Panvel experienced fresh supply from Category A realtors such as Paradise, Proviso, Balaji, Adhiraj and Arihant Developers. The unsold inventory in the city stood at 18,000 units for the quarter ending September.
The rental market continued to hold sway with a six percent growth in the average rents, YoY. While the proximity to Hiranandani Estates and rapid infrastructure expansion kept the rental demand afloat in the emerging areas
of Kharghar, New Panvel and Kamothe, the upcoming Greenfield Airport, ample inventory supply and pocketfriendly rates boosted rates in Ulwe. The average rentals in the housing hubs grew by 8-9 percent, each, YoY.
THANE AND BEYOND
The home buying sentiment remained afloat in Thane in the studied quarter; however, property prices maintained status quo. The ongoing development on the Wadala-Kasarvadavali and Thane-Kalyan metro corridors and competitive pricing in comparison to Navi Mumbai and Mumbai continued being the growth drivers for Thane.
Property sales surged by 20 percent, QoQ, with majority demand inclining towards 2 BHK units priced within Rs 50-70 lakh. The under-construction segment performed better than the ready category in Thane.
Kolshet Road and Ghodbunder Road captured nearly 60 percent of the total buyer demand. Panch Pakhadi and Teen Haath Naka, too, benefitted from the ongoing Thane-Kalyan metro project. Buyer traction in Kolshet and Dombivli was driven by lower property ‘asks’ and fresh supply by Category A builders such as Lodha, Godrej and Kalpataru. On average, the micro-markets recorded a 2-4 percent growth in the weighted capital rates, each, QoQ.
New supply dipped due to the liquidity crunch faced by most developers and pending project approvals. Nearly 42 new projects were added to the market, with around 4-5 from Category A builders. Ghodbunder Road, Dombivli, Shilphata, Ambernath and Badlapur saw maximum new launches, mostly in the affordable and mid-income segments. Unsold inventory in Thane stood at 20,000 units.
The rental market remained weak and posted a marginal one percent hike in the average yearly rents. Kasarvadavali, Majiwada and Kalwa emerged as the key performers and clocked 4-8 percent growth in the average rentals, each, YoY. While rentals in Kalwa grew owing to ample inventory supply, Majiwada and Kasarvadavali benefitted on the back of the ongoing metro project.
Despite a 60 percent increase in site visits, sales volume in Mumbai dipped by 25 percent, QoQ. Unattractive offers and high real estate prices impaired the home buying sentiment in the city. However, residential supply showcased marked improvement during the period. Nearly 40 new and re-launched projects were added to the city, with the affordable segment accounting for almost 70 percent of the market share. Mira Road and beyond saw the maximum spurt of low-cost units; however, Goregaon, Malad and Parel remained the hubs for mid-income segment projects.
Increased affinity for 1.5 BHK units with a carpet area of 450-500 sq ft marred sales volumes as the market remained inundated with 1 BHK and 2 BHK configurations. Braving the tides, Worli, Lower Parel, Malad, Mira Road, Goregaon and Kandivali emerged as the favourite home buying destinations. Resale units topped the popularity charts in these areas. Nallasopara, Vasai and Jogeshwari (West), too, garnered homebuyers’ interest. The average capital prices in the locales grew by 3-5 percent, QoQ.
Unsold inventory in the city grew by 20 percent and stood at 1.20 lakh units by the end of the quarter ending September. Tepid responses from homebuyers and revocation of 10-15 percent deals from the previous quarter contributed to the trend.
The rental market saw average ‘asks’ going up by two percent, YoY. Vikhroli (East) and Nallasopara emerged as the market leaders with a nine percent growth, each, in the average annual rents. While the ongoing Swami Samarth Nagar-Vikhroli metro project and proximity to Hiranandani Estates boosted the values in Vikhroli (East), affordability and ample residential supply corroborated the trend in Nallasopara.
Phase-wise launches of the previously announced projects remained a popular trend across MMR as delayed approvals, and limited financial options thwarted new project supplies. The government’s attempt to relax the Non-Banking Finance Companies (NBFC) norms and liquidate their loan portfolios also failed to create the desired realty momentum in the city. Struggling with funds, developers refused to revise property prices, leading to subdued interest and rising inventory levels. Only affordable and mid-income projects, amounting to 70 percent of the overall supply in the city, garnered homebuyers’ attention. Luxury and uber-luxury projects suffered in the absence of the investor community.