Spike in Island city real estate sales

Published on Nov 01, 2022 12:47 AM IST

MUMBAI: The Island city in Mumbai Metropolitan Region (MMR) showed a spectacular growth in real estate sales, although Panvel, Thane and the far western suburbs beyond Dahisar showed a decline in the July-September quarter of 2022-23, in line with a slight slowdown in the sales momentum across eight Tier-1 cities, the quarterly report by Liases Foras, the independent non-broking real estate research firm released on Monday

The Island city, which recorded a sale of 537 units in July–September quarter of 2021-22, and 624 units in April to June quarter of 2022-23, jumped to 966 units in the July-September period, showing a q-on-q increase of 55 per cent, and year-on-year increase of 80 per cent. (HT PHOTO)
The Island city, which recorded a sale of 537 units in July–September quarter of 2021-22, and 624 units in April to June quarter of 2022-23, jumped to 966 units in the July-September period, showing a q-on-q increase of 55 per cent, and year-on-year increase of 80 per cent. (HT PHOTO)
BySatish Nandgaonkar

MUMBAI: The Island city in Mumbai Metropolitan Region (MMR) showed a spectacular growth in real estate sales, although Panvel, Thane and the far western suburbs beyond Dahisar showed a decline in the July-September quarter of 2022-23, in line with a slight slowdown in the sales momentum across eight Tier-1 cities, the quarterly report by Liases Foras, the independent non-broking real estate research firm released on Monday.

The Island city, which recorded a sale of 537 units in July–September quarter of 2021-22, and 624 units in April to June quarter of 2022-23, jumped to 966 units in the July-September period, showing a q-on-q increase of 55 per cent, and year-on-year increase of 80 per cent. The central suburbs from Sion to Mulund showed a 6 per cent rise, western suburbs from Bandra to Dahisar 3 per cent, and central suburbs extending from Kalyan to Bhiwandi, Titwala and Badlapur, showed a normal growth at 13 per cent, but sales in Thane slumped from 1,940 units to 1,399 units, and Panvel city as well as suburbs beyond Dahisar recorded 29 per cent and 17 per cent decline in sales.

The overall sales in MMR micro-markets showed a 20 per cent year on year growth, from 15,969 units sold in July-Sept in 2021-22, but quarterly sales had marginal change from 19,284 units sold in April-June to 19,193 in July-Sept, 2022-23, the report said.

“The April-June quarter was the best ever for residential real estate. Discounts were offered leading to affordability for the consumer in that quarter. The moderately slow growth in the September quarter could be related to interest rates for home loans going up due to repo rate increase, the sentiments or fears related to the global economy,” said Pankaj Kapoor, managing director, Liases Foras.

Since April 2022, the Reserve Bank of India has increased the repo rate four consecutive times in its monetary policy in an attempt to rein in rising inflation.

He attributed the spike in the Island city sales to good new launches and sales. Asked if the decline in far suburbs like Thane, Panvel, and far western suburbs was an indication of saturation, he said, “The decline is similar to the trend in other cities, and the reasons could be more macro-economic rather than local factors. Panvel, for example, has a developed segment, and an undeveloped segment. The undeveloped segment is still struggling unless investors step in to purchase at nowhere locations.”

The average weighted price of unsold inventory in MMR fell by 2 per cent in MMR from 12,279 in Q1 to 12,090 in Q2. “This is not an indication that prices have reduced. The dip in average weighted price could be a result of the new supply of housing units coming into the market at a lower rate,” Kapoor said. “I am sensing the market is slowing down. After two good quarters, the third quarter is slower though cumulatively the financial year 2023 will be the highest ever.”

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