Mumbai residential launches down 10% to 16,106 units in Q4

Over a fifth of the launches were from Navi Mumbai and Eastern suburbs.

According to a report by Cushman and Wakefield, in Q4 2023, Mumbai’s residential sector witnessed a launch of 16,106 units, 10% lower than the previous quarter and near similar levels last year. 

Navi Mumbai and Extended Eastern Suburbs submarkets were primary contributors to the quarterly launches, with a 21% share each. 

Here’s more from Cushman and Wakefield:

Western Suburbs and Thane submarkets also had a considerable share of 18% each. New launches in prominent township projects drove quarterly launches in Thane and Extended Eastern Suburbs submarkets, accounting for over 60% of each submarket volume. 

The annual launches in the year 2023 stood at 72,600 units, a 12% dip from 2022 record high levels. Close to 60% of the annual launches were concentrated in the Extended Eastern Suburbs (27%), Western Suburbs (16%) and Thane (16%) submarkets. In the previous year, Western and Eastern suburbs were the top contributors. 

The year 2023 witnessed a growing trend in redevelopment projects within Western Suburbs, Western Suburbs Prime and South Central, largely driven by improved connectivity prospects by metro and upcoming infrastructure projects (Metro Line 3 Phase I and the coastal road) 

Mid segment dominated quarterly launches 

Mid (59%) and High-end (22%) segments drove quarterly launch activity. Mid-segment launches were driven by markets such as Thane, Eastern and Extended Eastern Suburbs. High-end supply was largely distributed across Western Suburbs, Navi Mumbai and Thane submarkets. For the full year, midsegment launches dominated with close to 60% share. 

High-end & Luxury segment launches witnessed a robust 84% rise compared to last year while the affordable segment witnessed a 14% drop. Supply for high-end & luxury is expected to rise in the near term across suburban and south-central submarkets of the city. 

Quoted capital values continue to rise 

The rise in the number of redevelopment projects has led to increased demand for rental homes, particularly in Western Suburbs where rents have risen by 5-6% on a q-o-q basis. On the back of robust demand trends, capital values in South and South Central submarkets witnessed a rise of 6% on a q-o-q basis. 

Quoted capital values in other submarkets have improved by 3-5% on a quarterly basis. This upward trend in the capital values is expected in the near term as infrastructure upgrades and connectivity enhancements (Metro Line 3 and coastal road projects) proceed in the south and western suburban areas of the city.