New home launches in Mumbai up 34.9% to a record high of 8,480 units in Q3

Nearly 30% of the launches were in Navi Mumbai.

In the third quarter of 2023, Mumbai witnessed new launches totalling 8,480 units in the high-end segment, up by 34.9% q-o-q and rising to an all-time high. According to a JLL report, the majority of the launches were spread across the nodes in Navi Mumbai, which had 28.3% of the total launches, followed by Western Suburbs II and Thane with respective shares of 21.8% and 13.6%.

Select submarkets, such as South Mumbai, Western Suburbs I and Thane, recorded a decline in new launches compared to the previous quarter.

Here’s more from JLL:

Residential sales in the high-end category recorded another new high as home buyer preferences for spacious homes continued 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 recorded the highest share with 23.6% of the total high-end sales, followed by the Navi Mumbai and the Western Suburbs II submarkets with a share of 19.7% and 15.8%, respectively. South Mumbai saw its sales rise to an 18-quarter high. Delta Palm Beach in Navi Mumbai and Codename Westbay Phase 1 in Western Suburbs I were some notable launches that recorded robust sales.

Capital values up q-o-q

The overall capital values recorded a q-o-q rise of 2.9% 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. Thane recorded the highest price growth among all the submarkets.

Rents increased by 2.4% q-o-q, 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 the rising demand for luxury homes by high-net-worth individuals, non-resident Indians, industrialists and C-suites.

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 assets.

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