Mid segment dominates Mumbai’s new residential launches

A total of 19,307 units were launched in Q4 2021, 55% of which were from the mid segment.

New residential launches in Mumbai, India increased 25.5% q-o-q to 19,307 units in Q4 2021. On a y-o-y basis, Cushman & Wakefield says launches were up by 68%, mainly due to the number of launches doubling in Suburban and Extended Suburban sub-markets. 

Here’s more from Cushman & Wakefield:

With 56,444 units launched totally in 2021, annual launches have grown by 72% as compared to 2020. Sustained sales momentum since the start of the year owing to government incentives and a non-disruptive festive season (no third wave) helped the sentiment to remain positive. 

Eastern Suburbs and Extended Eastern Suburbs submarkets witnessed highest launches during the quarter with a combined share of 40% followed by the sub-markets of Western Suburbs and Navi Mumbai with 19% and 16% shares, respectively. 

Developers such as Runwal Group, Puranik Builders, Lodha Group and Marathon Nexgen were most active during the quarter. Developers continued to focus on completion of ongoing projects to fulfil the higher demand for completed homes. The third Covid wave that has begun to hit major Indian cities since the start of first quarter 2022 is likely to slow down the momentum a bit in the H1 2022, and is likely to improve thereafter. 

Mid and affordable segments launches remained dominant 

The mid and affordable segments together contributed nearly 88% of new launches for the full year 2021, with the mid segment alone accounting for ~60%. During the fourth quarter, mid segment contributed highest with a 55% share of launches while the affordable segment accounted for 29%. 

The high-end segment witnessed maximum q-o-q growth in percentage terms, mainly due to increased launches in South Central Mumbai and Western Suburbs. Affordable segment saw higher launches during the quarter with Extended Eastern Suburbs dominating with 58% share in unit launches. 

Easy availability of land in suburban and peripheral micro markets along with relatively affordable land prices is a driver for mid-segment project launches in the city. For the same reason, activity in micro markets such as Eastern Suburbs, Thane and Navi Mumbai would remain higher. 

Capital values remain stable; developer incentives continue 

Quoted capital values have remained range-bound across all sub-markets during the quarter, although developers were seen offering spot-on incentives to potentially close deals faster. In many newly launched projects, developers were offering incentives like zero stamp duty, no registration charges, zero floor rise, no PLC charges, free club membership, freebies like furniture & white goods etc. to incentivise sales. The capital values are expected to remain range-bound in the near future. Rental values also remained stable across all locations during the quarter.