Mumbai: The Housing Report, 2024 for Mumbai Metropolitan Region (MMR), published by CREDAI-MCHI along with CRE Matrix, has revealed notable trends in sales, inventory, and property values across various regions within MMR.
According to the report, the overall housing sales have increased by 5% in FY 2024 compared to FY 2023, reflecting the region's robust demand for residential properties despite a challenging economic environment. This growth is particularly significant given the backdrop of a 22% decline in new housing launches, indicating a strong absorption rate of available inventory.
This report provides critical insights into the MMR real estate market, showcasing significant trends and developments that are shaping the housing landscape.
Key findings from the report highlight a substantial 41% surge in sales in South Mumbai, driven by the redevelopment of old buildings into high-end luxury projects. Navi Mumbai follows with a 22% increase in sales, bolstered by improved connectivity and infrastructure developments such as the Mumbai Trans Harbour Link (MTHL) and Navi Mumbai Airport. Despite these positive trends, the report notes a 63% rise in unsold inventory in Navi Mumbai, primarily due to the high volume of recent launches.
The report also documents a steady rise in the average value of housing units across MMR. There was a notable 4% increase in FY 2024 compared to the previous fiscal year. Specific regions such as Bhiwandi, Thane City, Navi Mumbai, and Mira-Bhayandar experienced a 7-12% appreciation in apartment values, with the Rest of Palghar region seeing an impressive 25% increase.
Expressing gratitude for the collaborative effort with CRE Matrix, President of CREDAI-MCHI, Domnic Romell said, “This effort has empowered us to deliver a comprehensive analysis of the MMR's real estate landscape. The findings of the report underscore our commitment to provide stakeholders with accurate, actionable data, and fostering informed decision-making in this dynamic market.”
The Chief Executive Officer (CEO) and Co-Founder of CRE Matrix, Abhishek Kiran Gupta noted, “Despite a slight decline in growth rates of housing sales as expected, MMR still scaled new peaks in housing demand in FY’24. The demand to supply ratio in MMR has never been this high. There was a 22% decline in launches, but we saw a 5% growth in sales. Demand across macro-markets contributed the most with Eastern Suburbs, Western Suburbs and Thane City remaining strong. Navi Mumbai story is unfolding and we expect this to continue in the near future. With the Aqua line of Metro launching this year, we expect more hectic activity in regions benefitting from this development.”
The report underscores the dynamic nature of the MMR real estate market, with significant variations in performance across different regions. For instance, while Central Mumbai recorded a 12% drop in unsold inventory, the overall MMR region saw a modest 5% increase in unsold units compared to FY 2023, indicating a balanced demand and supply scenario.
Stating that redevelopment is driving up rental prices and affecting property sales in micro-markets, Co-Founder of PropFina, Nitin Singhal said, "In Andheri West, 3 BHK rentals increased from Rs 77,000 in 2021 to nearly Rs 1,14,000 in 2023. This trend is seen across various regions. With a 36-month redevelopment timeline, sales of under-construction, secondary, and ready-to-move-in properties are expected to rise. The gap between temporary accommodation rentals and actual rent is making it unsustainable for residents to stay nearby, increasing demand for ready-to-move-in inventory and creating new investment opportunities for flat owners."
