Intermittent lockdowns and soaring COVID-19 cases battered the residential market of Mumbai in H1 2020. Sales nose-dived by 45 percent, YoY, and new launches registered a 47 percent decline annually. The plummeted residential transactions spiked the unsold inventory levels by five percent to 1.44 lakh units and the Quarters to Sell (QTS) increased from 9.3 in H1 2019 to 10.8 in H1 2020. Property prices, however, displayed resilience. Developers in some parts of the city were open to negotiations with genuine homebuyers, but overall, the average ‘asks’ remained stable across quarters.
The three percent stamp duty reduction, deadline extension of RERA-registered projects by six months and flexible payment schemes by developers including, zero stamp duty up till December 2020, PLC waivers and 100 percent refund on deal cancellation, helped attracting serious buyers back to market. The western belts of Goregaon-Malad, Andheri-Dahisar and Kandivali (West) and the southern pockets of Lower Parel, Worli, Byculla, Parel and Sion remained the most popular among homebuyers. Compact homes captured nearly 60 percent of the market demand; however, limited supply in this category impeded conversions.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
Nonetheless, multiple relaxation schemes to expedite the redevelopment of cessed buildings, BDD Chawls at Worli, and Slum Rehabilitation Authority (SRA) projects may address the supply issues in the subsequent quarters. The infrastructure projects, such as Kharkopar-Uran railway line, Mumbai Trans Harbour Link project and Mumbai-Nagpur Highway, are also viewed as future growth corridors. Besides, a 13 percent yearly spike in MahaRERA-registered projects to 25,190 might also help the market turn corners in 2021.