The Mumbai real estate sector is clearly reaping the benefits of the emphasis placed on affordable housing by real estate developers and the Government. Several reports have pointed out that Mumbai posted the highest sales volumes across the top 7 cities in the country followed by Pune, its neighbour. Housing sales went up by 9% overall in the 7 largest cities in the country for Q3 2018. The affordable housing space and several schemes in this segment were major drivers of growth in this regard, going by reports.
Mumbai and Pune contributed a whopping 27% of overall purchases made throughout the country’s 7 biggest cities in this period. The NCR and Hyderabad had lower growth volumes with sales going up by around 2% as compared to the earlier quarter according to reports. The Q3 period is usually considered a slower period by real estate developers on account of many people in the country honouring their deceased kith and kin throughout a shraddh period of 15 days. This time is not concerned auspicious for buying new property.
Real estate developers usually wait it out till the commencement of the festival season for Hindus right from October to market and promote their new residential realty projects. Supply of housing units went up by only 3% in the last quarter as per reports. Affordable and low-budget housing were the key contributors in this regard. Units priced lower than Rs. 4 million contributed approximately 42% of the overall new housing supply. Homes that were priced between 4 and 8 million rupees accounted for roughly 33% of new housing supply.
The remainder was taken up by the ultra-luxury and luxury real estate categories. Mumbai’s real estate market is on the cusp of a steady revival and key projects in the city include Chandak Nishchay, Omkar Lawns and Beyond, Godrej Sky Gardens Vihaa and Shapoorji Pallonji Epsilon to name a few.
