New launches in Mumbai residential market increased by 33% in Q2 2021
Real Estate

New launches in Mumbai residential market increased by 33% in Q2 2021

New launches in the Mumbai residential market increased by 33%, from 4,616 units in Q1 2021 to 6,143 units in Q2 2021, as per a recent study by JLL. While sales in the city remained at similar levels of Q1 2021, transactions were concentrated in the price segment of Rs 50 lakh to Rs 1 crore, which accounted for 40% of the sales during the quarter.

Eastern suburbs accounted for the majority of new launches with 25%, followed by Western suburbs II (comprising Malad, Kandivali, Borivali and Dahisar) with 22%. In terms of sales, Thane and Navi Mumbai combined reported close to 50% of sales. When compared to Q1 2021 capital value of residential units in the city remained stable in Q2 2021.

Mumbai – trends in launches and sales


Further, most of the new launches in Mumbai were in the affordable and mid segment (ticket size upto Rs 2 crore) and formed 84% of the launches during the quarter. In sync with demand, developers are expected to focus on these price segments.

Karan Singh Sodi, Regional Managing Director, JLL India said, “The increase in sales presents clear signs of demand and buyer confidence coming back to the market. This has been on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans and freebies from developers and government incentives such as the reduction of stamp duty.”

Mumbai has consistently been the largest contributor to sales over the past five quarters and the trend continued in Q2 2021 as well. Almost one-third of the sales volume was contributed by the city during the quarter.

Residential sales across the top seven cities in Q2 (April-June) 2021 increased by 83% as compared to Q2 2020, across the top seven cities. According to JLL’s Residential Market Update – Q2 2021 released recently, this was mainly due to low base effect, less stringent lockdowns, and accelerating vaccination drives during Q2 2021, demonstrating improved resilience in the market. During the first wave of Covid-19, residential sales dropped by a record 61% quarter on-quarter to 10,753 units in Q2 2020. However, the impact of the second wave has been limited with sales in Q2 2021 dipping by 23% to 19,635 units.

Samantak Das, Chief Economist and Head Research and REIS, India, JLL said “The residential sector displayed improved resilience in Q2 2021 when compared to Q2 2020. There is no denying the fact that the second Covid-19 wave dented the market following a good recovery curve. However, the impact was muted when compared to the same period last year. Most of the changes observed in the sector have been structural in nature and demand for homes is only expected to increase. The RBI is expected to hold policy rates at the existing historically low levels, while prices will remain mostly range bound. The resultant affordable buoyancy will continue to attract fence sitters and serious homebuyers,”.

“If the downward trajectory in Covid-19 cases is sustained, the sector is expected to make a healthy recovery in the second half of 2021,” he added.

Established developers will continue to run the show
Structural reforms within real estate in the last few years started the process of weeding out smaller, unorganised developers from the market. The Covid-19 pandemic tilted the scale further in favour of established developers. Homebuyers have also become even more cautious in affecting their home purchase decisions. There is an increased preference and willingness to pay a premium for projects by developers with an established track record.

New launches expected to go up in H2 2021
On average, new launches of more than 35,000 units were witnessed every quarter between Q1 2019 and Q1 2020. In the Covid-era (Q2 2020 – Q2 2021), this has decreased to approximately 23,000 units.

Sustained growth of the sector in the second half of 2021
There is no denying the fact that the second Covid-19 wave dented the market following a good recovery curve. However, the impact was muted when compared to the same period last year. Most of the changes witnessed in the sector have been structural in nature and demand for homes is only expected to increase. Importantly, lockdown restrictions across cities are being eased and the vaccination drive is gathering pace. If the downward trajectory in Covid-19 cases is sustained, the sector is expected to make a healthy recovery in H2 2021.

New launches in the Mumbai residential market increased by 33%, from 4,616 units in Q1 2021 to 6,143 units in Q2 2021, as per a recent study by JLL. While sales in the city remained at similar levels of Q1 2021, transactions were concentrated in the price segment of Rs 50 lakh to Rs 1 crore, which accounted for 40% of the sales during the quarter. Eastern suburbs accounted for the majority of new launches with 25%, followed by Western suburbs II (comprising Malad, Kandivali, Borivali and Dahisar) with 22%. In terms of sales, Thane and Navi Mumbai combined reported close to 50% of sales. When compared to Q1 2021 capital value of residential units in the city remained stable in Q2 2021. Mumbai – trends in launches and sales Further, most of the new launches in Mumbai were in the affordable and mid segment (ticket size upto Rs 2 crore) and formed 84% of the launches during the quarter. In sync with demand, developers are expected to focus on these price segments. Karan Singh Sodi, Regional Managing Director, JLL India said, “The increase in sales presents clear signs of demand and buyer confidence coming back to the market. This has been on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans and freebies from developers and government incentives such as the reduction of stamp duty.” Mumbai has consistently been the largest contributor to sales over the past five quarters and the trend continued in Q2 2021 as well. Almost one-third of the sales volume was contributed by the city during the quarter. Residential sales across the top seven cities in Q2 (April-June) 2021 increased by 83% as compared to Q2 2020, across the top seven cities. According to JLL’s Residential Market Update – Q2 2021 released recently, this was mainly due to low base effect, less stringent lockdowns, and accelerating vaccination drives during Q2 2021, demonstrating improved resilience in the market. During the first wave of Covid-19, residential sales dropped by a record 61% quarter on-quarter to 10,753 units in Q2 2020. However, the impact of the second wave has been limited with sales in Q2 2021 dipping by 23% to 19,635 units. Samantak Das, Chief Economist and Head Research and REIS, India, JLL said “The residential sector displayed improved resilience in Q2 2021 when compared to Q2 2020. There is no denying the fact that the second Covid-19 wave dented the market following a good recovery curve. However, the impact was muted when compared to the same period last year. Most of the changes observed in the sector have been structural in nature and demand for homes is only expected to increase. The RBI is expected to hold policy rates at the existing historically low levels, while prices will remain mostly range bound. The resultant affordable buoyancy will continue to attract fence sitters and serious homebuyers,”. “If the downward trajectory in Covid-19 cases is sustained, the sector is expected to make a healthy recovery in the second half of 2021,” he added. Established developers will continue to run the show Structural reforms within real estate in the last few years started the process of weeding out smaller, unorganised developers from the market. The Covid-19 pandemic tilted the scale further in favour of established developers. Homebuyers have also become even more cautious in affecting their home purchase decisions. There is an increased preference and willingness to pay a premium for projects by developers with an established track record. New launches expected to go up in H2 2021 On average, new launches of more than 35,000 units were witnessed every quarter between Q1 2019 and Q1 2020. In the Covid-era (Q2 2020 – Q2 2021), this has decreased to approximately 23,000 units. Sustained growth of the sector in the second half of 2021 There is no denying the fact that the second Covid-19 wave dented the market following a good recovery curve. However, the impact was muted when compared to the same period last year. Most of the changes witnessed in the sector have been structural in nature and demand for homes is only expected to increase. Importantly, lockdown restrictions across cities are being eased and the vaccination drive is gathering pace. If the downward trajectory in Covid-19 cases is sustained, the sector is expected to make a healthy recovery in H2 2021.

Next Story
Real Estate

Häfele unveils Profin aluminium profiles for modern kitchens

Häfele has launched its Profin range of aluminium profiles, designed to enhance open kitchen layouts gaining popularity in urban homes. With shrinking living spaces and the rise of micro-living, kitchens are increasingly becoming integral parts of living areas. This demands cabinetry that is both functional and visually seamless. The Profin range offers a modern solution, combining aesthetics with precision engineering. It includes four product categories—Gola Profiles, Stack Modular Shelving, Rail Door Profiles, and Strike Shelving System—catering to varied functional and design nee..

Next Story
Resources

CIPL to invest Rs 4 billion in phosphoric acid plant

Caitlyn India (CIPL) will invest Rs 4 billion to set up a 50,000 TPA integrated phosphoric acid plant in southern India. The company is scouting port-accessible sites and plans to commission the facility by FY 2027. The project will span 30–50 acre and aims to reduce India's dependency on imported phosphoric acid. The plant will adopt hemihydrate–dihydrate (HH-DH) technology, enabling high-purity phosphoric acid production with cleaner gypsum by-products. A captive sulphuric acid unit will be included for operational efficiency. Initially, output will be supplied to domestic fertilise..

Next Story
Equipment

TKIL Industries, HOPPECKE partner for rail battery systems in India

TKIL Industries (formerly thyssenkrupp Industries India) has signed an exclusive agreement with Germany-based HOPPECKE Batterien GmbH & Co. to develop battery systems for India’s growing rail sector. The partnership aims to deliver innovative and sustainable energy storage solutions for metros, regional trains, and locomotives. The first joint project under this strategic alliance has already been secured and is expected to roll out in 2025. The collaboration comes at a time when India plans to double its electric locomotive capacity by 2030 and expand metro services from 23 to 31 c..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?