- Unchanged guidance value and instability in the job market impaired the home buying trend in Mumbai in Apr-Jun 2020. While enquiries grew to around 50 percent of the pre-COVID levels at the end of the period, sales remained timid and declined by over 70 percent, QoQ.
- While MahaRERA extended the completion timeline for ongoing projects by three months, challenges around disrupted supply chain and labour shortage remained unaddressed, affecting the inventory addition.
- Barring a few project launches by Category A developers, many builders deferred their announcements until the market reopens.
- While yearly rentals tumbled, average capital prices across zones remained stable, QoQ. Taloja, Panvel and Kharghar in Navi Mumbai, and Ambernath and Ghodbunder Road in Thane remained popular amid the builder-buyer community.
Over two months of lockdown, unchanged circle rates and job losses collectively impacted the home buying sentiment in Mumbai in Apr-Jun 2020. While enquiries gradually increased to about 50 percent of the pre-COVID-19 times at the end of June 2020, sales remained low key. The city witnessed over 70 percent drop in the quarterly property sales volume.
Developers struggling for sustenance abstained from announcing new projects and focused on disposing of their existing residential units. Barring a few project launches by Grade A developers, including Lodha Developers, Godrej Housing, Hiranandani Group, Runwal Group and L&T Realty, the majority of builders deferred their expansion plans. Technology disruption took the industry by storm. From generating enquiries to e-site visits and last-mile delivery, builders massively relied on technology to market their projects.
The average capital values across Mumbai, Thane and Navi Mumbai remained stable, QoQ. However, rental prices reeled under pressure due to limited supply of ready homes in the city and restriction from residential societies towards relocation. While home rents in Mumbai did not report any hike, YoY, the same dipped in Thane by a percent in Apr-Jun 2020, as against Apr-Jun 2019. Navi Mumbai has been the only market that managed to sail through and registered a three percent hike in the yearly rentals.
Price movement in key micro-markets
|Localities||Apr-Jun 2020||QoQ % Change||YoY % Change||Rental Yield|
|Dombivli (East)||Rs 5,010 - 5,900||-2%||-2%||3%|
|Kalyan (West)||Rs 5,550 - 6,500||0%||3%||3%|
|Virar||Rs 4,430 - 5,130||0%||2%||2%|
|Panvel||Rs 5,950 - 7,010||-1%||4%||2%|
|Mulund||Rs 15,110 - 17,440||1%||2%||3%|
|Kharghar||Rs 7,820 - 9,220||0%||1%||2%|
|Badlapur||Rs 3,410 - 3,980||0%||1%||2%|
|Goregaon (East)||Rs 14,660 - 18,060||-1%||2%||3%|
|Vasai||Rs 4,970 - 5,690||0%||1%||3%|
|Kandivali (West)||Rs 13,260 - 16,150||0%||0%||3%|
* Average 'ask' rates have been calculated as per listings posted on 99acres.com
** Rental Yield has been calculated for a 1000 Sq. Ft. apartment