Mumbai prime residential launches up 18.8% to 1,042 units in Q1

South Central Mumbai was the top contributor to this quarter’s new launches.

New launches in Mumbai’s high-end residential segment rose 18.8% q-o-q and 103.9% y-o-y to 1,042 units in the first quarter of 2022. JLL says Eastern Suburbs I, South Central Mumbai and Western Suburbs II submarkets recorded a steep rise in the number of new launches in 1Q22 compared to the previous quarter.

According to JLL, South Central Mumbai contributed the most to quarterly launches, with a 40.4% share, followed by Western Suburbs II submarket with a share of 32.1%. Some of the major projects launched in 1Q22 in the high-end segment were Bhoomi Simana Wing A Phase 1 in South Central Mumbai and Elixir Reserve in Eastern Suburbs I submarket.

Here’s more from JLL:

The demand for the high-end residential segment improved significantly and rose 31.9% q-o-q in 1Q22, as buyers rushed to book and register the apartments before the stamp duty hike, and additional metro fees from 1 April 2022. Non resident Indians (NRIs) drove the demand during the quarter along with high net worth individuals (HNWIs).

Eastern Suburbs I, South Central Mumbai and Thane submarkets together contributed 58.8% of the total sales in 1Q22. As the economy opens up completely, the improved market sentiment and increasing demand for bigger homes has led to increased sales in the high-end segment in 1Q22.

Capital values inch up slightly in 1Q22

In 1Q22, capital values inched up slightly for select high-end residential projects. Developers increased the capital values for select projects mainly due to the rise in the input raw material costs. However, developers continued to offer flexible payment options and discounts when it came to deal closures.

Rents inched up slightly in most of the submarkets in Mumbai during 1Q22, as the returning workforce caused a surge in demand for rental housing, thereby supporting rent increases.

Outlook: Demand likely to remain upbeat

The high-end residential market is likely to continue its momentum going forward on the back of improved market sentiment and economic activities resuming to full capacity.

The trend of developers entering into JVs or taking over stalled projects will continue in the medium term. The relaxation in the Coastal Regulation Zone (CRZ) norms is likely to boost construction activity in the high-end segment with sea-view apartments a big draw in this category. Since the economy has opened up completely, on-ground construction activity is likely to gain pace.

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