Mumbai Q2 residential launches drop 10% to 17,514 units

Over half of the launches were from the eastern and western suburban submarkets.

In the second quarter of 2024, Mumbai’s residential sector saw launches of 17,514 units, marking a slight decline of 8% and 10% compared to the previous quarter and Q2-23, respectively, according to a report from Cushman and Wakefield. 

Q2-24 launches were primarily driven by the eastern and western suburban submarkets, accounting for 29% and 27% of the launches, respectively. Within these submarkets, the majority of the launches were concentrated in locations such as Chembur, Mulund, Jogeshwari, and Borivali. 

Here’s more from Cushman and Wakefield:

Conversely, peripheral markets experienced a slowdown in quarterly launches, contributing a cumulative share of less than 5% of the total quarterly launches, the lowest in recent years. South Central Mumbai submarkets witnessed a notable increase in launches, predominantly from high-end segment projects in areas like Mahim and Dadar. 

The first half of 2024 cumulatively saw 36,975 unit launches, consistent with the performance over the same period in the last three years.

Mid segment continued to dominate launches driven by suburban markets 

Mid-segment properties dominated quarterly launches, accounting for about 67% of the launches, while the high-end segment comprised around 20%. Midsegment launches were predominantly concentrated in the Eastern Suburbs (34% of the segment volume), Thane (25%), and Western Suburbs (25%). 

Compared to the average of the past four quarters, the affordable segment remained largely muted, whereas the high-end segment saw significant growth, with a 40% increase over the average. The newly operational coastal road (Marine Drive-Worli) and the upcoming Metro Line 3 (Andheri-Cuffe Parade) are enhancing the prospects for redevelopment projects in the South Central and Western Prime submarkets. 

The corridor along upcoming Metro Line 4 (Kasarvadavli- Wadala) is also expected to witness high-end segment launches, near Mulund to Vikhroli, in near term. Numerous prominent land acquisitions and redevelopment project proposals are active in these suburban markets. 

Quoted capital values continue to rise 

The increasing number of redevelopment projects, particularly in the Western Suburbs Prime and Western Suburbs markets, has sustained high rental housing demand, with rental values exhibiting a 5-6% growth over last quarter. 

Capital values have seen a rise of about 3-6% across all submarkets compared to the previous quarters, driven by significant progress in infrastructure projects. Enhanced connectivity from the newly operational coastal roads and advanced stages of the Metro Line 3 project is expected to further boost capital values in South, South Central, and parts of the Western Suburbs.