Slowdown in Residential Property Registrations

The monsoon season has seen decline in property registrations in Mumbai in the month of July. The registrations were dominated by the mid-segment homes and the premium /luxury homes garnered a higher share of registrations.

Mumbai, the most prominent property market, recorded a marginal decline in residential property registrations with 9,923 units being registered in July 2023. The revenue collection of Rs 808 crore reflected a 6% decrease from June 2023 and a 3% decline from July 2022.

According to a report by Anarock , a  quick assessment of new unit launches in Mumbai for the period of Apr-Jun 2023 indicates that properties ranging from 500 sq ft to 1,000 sq ft dominated with the highest share of 51%. Following closely were properties sized less than 500 sq ft, contributing an additional 35%. Properties of 1,000 sq ft and above accounted only for 14% during the above period.

Post- pandemic, the allure of larger units has been on the rise, with the people preferring to own properties that provide ample space and liveable conditions. “Analysing the new unit launches in Mumbai for the period of April-June 2023, it was evident that the INR 80 Lakh – INR 1.5 Cr segment experienced the highest activity, constituting 43% of the total registrations. Following closely was the INR 1.5 Cr – INR 2.5 Cr segment, having a share of 27%. Surprisingly, properties priced above INR 2.5 Cr accounted for 21% of the total share, rising from 17% in the previous quarter, according to Anuj Puri, Chairman, of Anarock Group.

Since the onset of the pandemic, the luxury real estate segment has been thriving exceptionally. High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs) have been capitalizing on the market conditions and securing deals at favorable rates. Being a hub of affluent individuals, Mumbai has witnessed a strong demand momentum in the luxury housing sector, and this trend is expected to persist for at least the next couple of years.

The region-wise analysis of Mumbai’s new launches in April -June 2023 shows that the highest number was recorded in the Western Suburbs (55%), closely followed by the Central Suburbs (38%). The operationalization of the second phase of two metro lines has spurred real estate activity in the Western Suburbs as connectivity has improved and commuting has now become convenient.

With the onset of monsoon season, site visits and closures slow down and the overall registrations also take a hit. The next few months are likely to witness a momentary slowdown; however, the long-term direction remains upwardly positive, with the Mumbai real estate sector remaining on a strong footing.