Residential sales dropped by 5% in 2019 in Mumbai Metropolitan Region
Sale of residential properties in the Mumbai Metropolitan Region (MMR) dropped by 5 percent in 2019 compared to the previous year due to the economic slowdown, according to a report released by real estate consultant Knight Frank India.
The sales dropped despite a 7 per cent increase in the number of new launches in MMR.
Pune and Kolkata were the other two markets that witnessed a drop in housing sales but sales increased in Delhi-NCR, Bengaluru, Chennai, Hyderabad and Ahmedabad.
Across the eight cities, the report said, residential property sales rose to 2.46 lakh units in 2019, a 1 percent increased over the 2018 figure. According to the report, Bengaluru saw maximum rise in housing sales of 10 per cent to 48,076 units.
The number of homes sold in 2019 in MMR fell to 60,943 units during the calendar year of 2019, as compared to 63,893 units in calendar year of 2018, according to the Knight Frank India report.
Mumbai Metropolitan Region comprises the combined area under eight municipal corporations of Greater Mumbai, Thane, Kalyan-Dombivali, Navi Mumbai, Ulhasnagar, Bhiwandi-Nizamapur, Vasai-Virar and Mira-Bhayandar and 9 municipal councils of Ambarnath, Kulgaon-Badlapur, Matheran, Karjat, Panvel, Khopoli, Pen, Uran, and Alibaug, apart from over 1,000 villages in Thane and Raigad Districts.
According to the report, the sales of housing units in the second half of 2019 dropped to 27,212 as compared to 31,481 units during the corresponding period of 2018.
The reasons for the slowdown remain the ongoing economic slowdown, national and state elections in 2019 for MMR, the report adds.
“The residential sector in Mumbai was also impacted by general slowdown as well as the continued effects of credit crunch which has impacted end-user sentiments with sales declining by 14 per cent in the last six months of 2019 compared to 2018,” said Gulam Zia, Executive Director, Knight Frank India.
The extent of decline was lower in the affordable and mid-segment markets of peripheral suburbs and Thane.