November 23rd, 2023
Mumbai's luxury property market, particularly in south and central areas, has experienced a remarkable decline in unsold inventory, reaching an unprecedented low in 15 years. Despite initial apprehension regarding excess inventory levels, the market has exhibited impressive growth since the outbreak of the pandemic.
Recent data from Liases Foras Real Estate Rating & Research reveals that over the last 12 months, the market saw the sale of 722 apartments priced at Rs 10 crore and above, surpassing the 532 new launches.
Pankaj Kapoor, Managing Director of Liases Foras, notes that the ultra-luxury segment in South and Central Mumbai has demonstrated nearly three times the sales growth, achieving its best-ever inventory overhang in 15 years.
In 2021, the market comprising south and central Mumbai had a total of 118 months' inventory and it has now declined to 38 months. Vikas Oberoi, CMD of Oberoi Realty, observes that buyers in the luxury market prefer ready properties, particularly those nearing completion, as reflected in the market's current trend.
According to a report published in the Economic Times, Chaturvedi emphasizes positive consumer sentiment and increased activity in premium housing, with key areas like south and central Mumbai and pockets like Bandra displaying notable growth. Some projects in these markets, launched several years ago, have experienced renewed interest, selling inventory worth Rs 1,000-1,500 crore in the last year.
Despite challenges such as higher interest rates and escalating housing prices, Mumbai's property market has consistently set records over the last three years. Increased stamp duty collection, driven by heightened activity in premium and mid-income housing, has significantly boosted the state's revenue. In the first 10 months of the current year, the state government has collected over Rs 9,220 crore through stamp duty, surpassing the all-time high of Rs 8,893 crore recorded in 2022.
South and central Mumbai's most expensive apartments have played a pivotal role in these achievements, witnessing large-ticket transactions involving industrialists, CXOs, actors, and sports personalities over the past two years. While prices in ready and near-completion projects have increased, new launches have helped maintain the weighted average price at around Rs 65,500 per sq ft, solidifying the area's status as one of the costliest real estate markets globally.
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