The rich in Mumbai are buying properties like never before

• Mumbai’s unsold inventory of homes priced above ₹2.5 crore is the lowest they’ve ever been in a long time, says Anarock.
  
• The city’s unsold inventory across all other price points increased during the quarter, especially those priced between ₹40 lakh to ₹1.5 crore.
  
• Mumbai accounts for the highest share in unsold units amongst the major cities, says Colliers.
  

Mumbai’s appetite for large and luxurious homes is growing. The unsold inventory of homes priced above ₹2.5 crore — fell by a quarter by the end of March 2023, as compared to the same quarter last year.

By the end of the first quarter of 2023, Mumbai had 15,520 units of unsold apartments at the aforementioned price point. This is the lowest inventory of luxury homes that the city has seen in a long time, says Anuj Puri, chairman of Anarock Group.

“Luxury homes have been driving housing sales across most cities since the first Covid-19 wave. “The quest for more space - one of the defining characteristics of luxury homes - fuels most of this demand, which has helped developers to clear significant chunks of their unsold luxury stock,” says Puri.

These homes also bucked the general trend in Mumbai, as the unsold inventory across all other price points increased during the quarter. In general, homes priced between ₹40-80 lakh rose the highest at 33%, while those priced between ₹80 lakh - ₹1.5 crore rose at 23%.

All the top seven cities that include Pune, NCR, Hyderabad, Chennai, Bengaluru and Kolkata saw the inventory of these ultra-luxe and spacious homes come down. However, the drop is at a much lower pace, of around 1%.



Source: Anarock

Mumbai moves in a different path

The real estate trends in Mumbai are not in line with that of India’s top cities, in other areas too. The biggest aberration is housing prices. In the first quarter of 2023, the prices of homes rose across the top eight cities, except Mumbai, according to a recent Colliers report.

Mumbai’s housing prices declined by 2% in Q1 as compared to the same quarter a year back, while that of top eight cities – Ahmedabad, Bengaluru, Pune, Chennai, Kolkata, Hyderabad and NCR – rose in double digits.

In spite of stable prices in the city at large, Mumbai’s micro markets like Panvel witnessed a 9% price rise on a YoY basis. Home prices in Western suburbs also rose by 6.4%.

“The region continued to account for the highest share in unsold units amongst the major cities in India. Unsold inventory has been consistently rising in the region for the last few quarters, led by new project launches in the city,” said Colliers.

Pankaj Kapoor, managing director of Liases Foras said that FY23 witnessed the highest-ever new launches and sales across major Indian cities in India. “The trends will likely continue, the sale and supply will likely grow, and the price rise will be moderate,” he added.

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