Mumbai prime residential launches soar by 60% to nearly 8,000 units in Q1

Over 30% of the launches were in Western Suburbs II.

According to JLL, Mumbai saw new residential launches totalling 7,979 units in the High-end segment in Q1 2024, up by 4.1% q-o-q while showing a staggering growth of 60.4% y-o-y. 

A majority of the launches were spread across nodes in Western Suburbs II, which accounted for 32.9% of the total launches, followed by Eastern Suburbs and Thane with respective shares of 17.6% and 12.8%.

Here’s more from JLL:

Except Thane and Navi Mumbai, all other submarkets recorded growth in new launches compared to the previous quarter. Major launches in 1Q24 were Mahindra Vistas Phase I in Western Suburbs II, Godrej Vistas in Eastern Suburbs I, Crystal Antara Spires in Thane and Aaradhya Avaan in South Mumbai. Around 7% of all project launches in the quarter were in the price bracket of INR 30 to 50 million.

Sales in the High-end segment at a new peak

Sales in the High-end category recorded a new high as homebuyer preferences for spacious homes supported the sales momentum. Industrialists, HNIs, C-suites and entertainment celebrities were witnessed buying high-ticket apartments in premium and desirable locations such as Malabar Hill, Worli and Bandra.

The Thane submarket had the highest share with 21.8% of the total High-end sales, followed by Western Suburbs II and the Navi Mumbai submarkets. South Central Mumbai and Western Suburbs II submarkets recorded all-time high sales. MICL Aaradhya Avaan in Prime South and Godrej Vistas in Eastern Suburbs were some notable launches that recorded robust sales.

Overall capital values remain stable

Overall capital values remained stable in 1Q24, while we saw a decent growth of 5% y-o-y as demand remained strong for premium apartments in the city. Rising input costs were also seen to have an impact on the continued price growth. Navi Mumbai and Eastern Suburbs I recorded the highest price growth among all the submarkets.

Rents have strengthened by 1.9% y-o-y, with the Navi Mumbai submarket recording the highest rent growth. This was driven by the rising commercial stock and infrastructure developments, such as Navi Mumbai International Airport, the Mumbai Trans Harbour Link (MTHL) and Navi Mumbai Metro, all of which boosted demand for apartments in that corridor.

Outlook: Demand for High-end apartments to remain robust

The High-end residential market is expected to grow further with rising demand for luxury homes by high-net-worth individuals, non-resident Indians, industrialists and C-suites. Several infrastructure projects coming in the near future will improve connectivity, making it easier for people to commute to work and opening up new areas for development.

We expect that prices will remain sticky with an upward trend as new launches hit the market at higher prices, and strong sales should support developers as they increase prices for their well-performing projects. Capital values are expected to rise at a faster pace y-o-y.

Note: Mumbai Residential refers to Mumbai's prime residential market.