Nearly 54% of the new housing supply in the peripheral areas of Mumbai is priced below ₹80 lakh, as per a report by Anarock Property Consultants.
“This represents a major evolutionary change in Mumbai’s real estate market, which, in previous years, was dominated by high-end and luxury housing,” according to Anuj Puri, chairman, Anarock Property Consultants.
“Overall, since 2013, nearly 54% of the supply in Mumbai Metropolitan Region (MMR) came in the ₹80 lakh category, with the remaining additions falling in the categories above ₹80 lakh,” he said.
MMR’s western and central peripheral regions have witnessed more than 90% of the launches within the affordable and mid-segment, priced less than ₹80 lakh.
“Rising property prices in Greater Mumbai are pushing the housing demand towards the peripheral areas,” Mr. Puri said.
The report confirms that 30-35% of MMR’s recent housing launches have been in peripheries, and also that at 0.2 million units, MMR has 37% of unsold inventory in top seven cities.
Mumbai’s share in overall launches in MMR declined from 71% in 2013 to 67% in first three quarters of 2018.
“Due to the expansion of city limits from Greater Mumbai to the peripheries, more than 1.8 lakh units since 2013 have been launched in the western and central peripheral regions,” Mr. Puri said.
Unsold inventory in MMR has witnessed a growth of nearly 56% till the end of Q3 2018 over 2013.
Aggressive launches between 2013 till 2015 have added to the unsold stock. However, post-2015, with restricted launches and stable absorption rates, the market has reversed its trend and the unsold stock has started to decline, the report said.
The majority of unsold stock in MMR is in Mumbai and its peripheral areas, the report added. Thane city and Navi Mumbai account for nearly one-third of the unsold stock in the region.
With 15-20% of the overall supply in MMR, Navi Mumbai has clocked the highest price appreciation during the past 5 years. While unsold stock in central suburbs increased from 20,600 units during 2013 to 34,400 units by the end of Q3 2018, in the western peripheral suburbs it declined by nearly 32% for the corresponding period, the report said.
