The real estate market in the Mumbai Metropolitan Region is on a recovery path, claims a report by Knight Frank India released today. The report is an analysis of the residential and office market performance of the Mumbai Metropolitan Region for the period between January–June 2016 half yearly analysis. The report claims that in the residential sector, mid and budget homes are driving the demand, while premium segment is still lagging behind.
For residential market the report states that, new project launches grew by 29 per cent Year-on-Year basis and absorption has increased by 23 per cent Year-on-Year basis; falling sentiments has move up after six consecutive quarters. Mid and budget segments are driving the demand; premium markets yet to pick up steam, MMR house prices are witnessing time correction. Even unsold inventory is down by 20 per cent in last two years. Thane, Navi Mumbai micro market is growing; Thane and Western suburbs grew by 47 per cent & 29 per cent respectively, while Navi Mumbai, Peripheral Central and Peripheral Western suburbs grew at 28 per cent, 9 percent and 21 per cent respectively. Demand in premium market grew by 13% compared to H1 2015
In the office sector, MMR office market recorded a growth, the transactions grew by 51 per cent to 3.8 million sq.ft and new completions jumped 115 per cent to 4.9 million sq.ft.
Dr. Samantak Das, Chief Economist & National Director - Research, Knight Frank India said, “The residential market of MMR is on a new growth path. New launches and sales are 29 per cent and 23 per cent higher respectively in H1 2016 Y-o-Y. However, considering that new launches and sales are still 50 per cent and 13 per cent lower respectively than the last five years’ average, these are early days to rejoice.”
Fali Poncha, Director – Residential & Land (Mumbai), Knight Frank India said, “While the residential segment in general witnessed the lowest number of new launches in the last three years across the top eight cities in H1 2016, Mumbai with its growth in new launches has proved to be a revelation. H1 2016 numbers have been significantly low as compared to the last 5 years. However, the bounce-back and changes in the home-buying environment lead us to believe that the worst is behind us.”