Driven by bottomed-out house rates, restricted-period stamp duty cuts, developer discounts and lowest-most effective residence loan prices, the Mumbai Metropolitan Region (MMR) saw the highest yearly decline (8%) in total unsold housing stock by the finish of this quarter – from 2,13,180 units as on Q1 2020-finish to 1,97,040 units as on Q1 2021-finish. It was the highest y-o-y decline of unsold housing inventory in the final 7 years, according to ANAROCK Property Consultants.
In preceding years, MMR’s stock either enhanced y-o-y or declined by no more than 3%. Thus, even as the region’s COVID-19 case count continued piling up, MMR emerged as one of the most buoyant residential markets in Q1 2021.
Notably, the all round stock fell regardless of ample new provide hitting the market place in the course of this and the preceding quarter. MMR saw 14,820 new units added in Q1 2021 – the highest amongst the leading 7 cities – however robust sales in Q1 2021 and Q4 2020 substantially dented the all round unsold stock in the area.
Close to 20,350 units had been sold in MMR in Q1 2021, of which 68% (about 13,750 units) had been sold in Mumbai, 18% (approx. 3,650 units) in Navi Mumbai and 14% (approx. 2,950 units) in Thane.
“Mumbai is one of the most expensive real estate markets in the world,” says Anuj Puri, Chairman, ANAROCK Property Consultants. “A reduction in overall acquisition cost by anything between 5% and 15% made a huge difference in buyer sentiments. Low home loan interest rates and developer discounts, and timely intervention of the government by ways of stamp duty reductions and a 50% cut in premium charges also helped the region get its mojo back even during COVID-19.”
City-smart Analysis
While all round unsold stock in MMR declined by 8%, individually, Thane reported the highest yearly decline of 14% in Q1 2021 against the corresponding period in Q1 2020, followed by Navi Mumbai with 12% and Mumbai with a 5% reduction. Mumbai saw the least decline amongst the 3 regardless of enhanced housing sales is mainly because it was the only city in MMR that added ample new provide in the 1st quarter this year and the preceding quarter.
Thane at the moment has close to 28,000 unsold units. It was 32,740 units a year ago. The city saw total housing sales of approx. 2,950 units in Q1 2021- escalating by 26% against Q1 2020. In new provide, the city added just 800 new units in Q1 2021 – a decline of 61% against the corresponding period in 2020 (when 2,070 new units had been launched).
Navi Mumbai saw its unsold inventory decline by 12% in the year – from 40,850 units in Q1 2020 to approx. 35,800 units as on Q1 2021-finish. Housing sales in the 1st quarter rose by 49% y-o-y with 3,650 units sold. It was 2,450 units in Q1 2020. In new provide, the city added just 1,110 units in Q1 2021 against 2,850 units final year, as a result declining by 61% on yearly basis.
Mumbai saw its unsold stock decline by 5% in the year – from 1,39,590 units in Q1 2020 to approx. 1,33,240 units as on Q1 2021. The city recorded robust sales in Q1 2021 of 13,750 units against 9,120 units year ago – escalating by 51% in a year. As for new provide, in contrast to other cities in the area, Mumbai saw a huge 132% yearly jump – from 5,560 units in Q1 2020 to 12,920 units in Q1 2021.