Mumbai prime residential launches rise 23.4% to 3,755 units in Q3 | Real Estate Asia
, India

Mumbai prime residential launches rise 23.4% to 3,755 units in Q3

Eastern Suburbs I accounted for 31.5% of the launches.

A total of 3,755 units were launched in Mumbai’s high-end residential segment in 3Q22, a rise of 23.4% q-o-q and 246.1% y-o-y. 

JLL says South Central Mumbai, Western Suburbs II and Eastern Suburbs I submarkets saw a steep rise in the number of new launches in 3Q22 on a q-o-q basis.

Here’s more from JLL:

Eastern Suburbs I contributed the most to quarterly launches, with a 31.5% share, followed by the Navi Mumbai submarket with a share of 17.9%. Some of the major launches during the quarter in the high-end segment were Lodha Bellevue Tower 2 & Tower 4 in South Central Mumbai, and Rustomjee Parishram, Silver Rock, Shelton Elite & Gateway in North Mumbai.

Demand for the high-end segment retains positive momentum in 3Q22

Demand for the high-end residential segment continued to be growth-oriented in 3Q22 with a q-o-q increase of 4.5%. New launches in the quarter accounted for 23.7% of total sales for this segment. The healthy response to these new launches was also a big contributor to the improved sales in the quarter. Launches by prominent developers at key locations saw healthy traction.

The Eastern Suburbs I, Navi Mumbai and Thane together contributed to 52.1% of the total sales in 3Q22, with some key projects clocking healthy numbers. The increasing appetite for larger homes has also been fuelling sales in the high-end segment.

Capital values rise across submarkets

Capital values increased marginally for the high-end residential market during the quarter. Capital values rose primarily on the back of increasing input material costs, which developers partially passed on to buyers, as well as strong sales which supported the increment in prices.

Rents increased slightly during 3Q22, as the returning workforce caused a surge in demand for rental housing, thereby supporting rental growth. Also, increased hiring resulted in higher demand and was a factor in rising rents in the city.

Outlook: Momentum likely to continue into the festive season

The high-end residential market is likely to continue its momentum going forward, on the back of improved market sentiment and increasing demand for bigger homes. Offers during the festive season could potentially spur homebuying activity further.

The cost of essential raw materials, such as steel, iron and cement, will be key influencing factors for the rise in capital values, as commodity prices have been on an upswing and the current geopolitical volatility may add to inflationary pressures.

 

Note: Mumbai Residential refers to Mumbai's prime residential market.

 

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