Mumbai Outperforms Other Metros in Terms of Residential Demand – With the Biggest Growth in the First Quarter of 2022
In the first quarter of 2022, residential demand & supply in Mumbai remained high. Despite the third wave’s uncertainty, home sales in Q1 2022 are 83 percent closer to pre-pandemic levels than they were in Q1 2019.
Due to the pandemic, Mumbai, India’s financial hub is one of the worst-affected cities. Approximately 3 million COVID-19 instances have been register in the city during the last two years. The resulting economic lockout and halt had an impact on all industries, including real estate. The city’s biggest dips occurred in 2020, when residential demand fell by half compared with the previous year. However, over the previous year, Mumbai and its outskirts saw a surge in residential real estate development. Which persisted in Q1 2022.
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Despite the arrival of the third wave at the start of the year, demand in Mumbai surged by 26% in Q1 2021. According the Real Insight Residential – January-March 2022, a quarterly assessment of India’s eight largest housing markets by the REA India group firm. In Q1 2022, the city had a highest demand share of 33% among the top eight cities. Consumer attitudes have improved significantly as a result of the mass immunization campaign and fewer limitations, which helped to ensure business continuation.
The excitement of homebuyers is evident in Mumbai, which has experienced the biggest sales since the initial wave in 2020. Demand in first quarter of 2022 already is 83 percent higher than it was before the pandemic in Q1 2019. The statistics show that the pace of residential sales growth would pick up in the next quarters as people’s search for property have intensified in the metropolis as the pandemic’s impact fades. Mumbai has been trending #1 on Houses. Com’s IRIS index, a leading indicator of impending demand in 42 key Indian cities, since October 2021, corroborating this.
The number of people looking to buy a home in Mumbai and its surrounding micro-markets reached in January 2022. In addition, registrations for both main and secondary sales have reached pre-pandemic levels. With registration for both primary and secondary sales having double in March 2022 compared with the same period in 2019.
According to the Residential Realty American Customer satisfaction Outlook. Homebuyers in Mumbai will seek for a house within a 2 km radius of social infrastructures such as healthcare and school facilities in the next two quarters (January to June 2022). The majority of future demand will be centered in outlying areas like as Thane, Navi Mumbai, Kalyan-Dombivali, and Vasai-Virar. Having said that, Mumbai is among the country’s most costly housing markets. In addition, many prominent developers have stated that they will raise property prices within next month’s as a result of rising input & construction costs as a result of present geopolitical concerns. As a result, programmers’ including such stamp duty reductions & tax rebates are still needed to encourage fence-sitting property purchasers and assist them in closing on a purchase, flats for sale in sion.
Mumbai residential market activity Q1 2022
Number of units in ‘000s
- With 30,360 units released in Q1 2022. Mumbai or its metropolitan area (MMR) saw a 246 percent increase in new supply.
- The city’s residential sales increased by 26%, with 23,361 units sold.
- In terms of national sales, Mumbai remains in first place.
- Property price below INR 45 lakh attracted the most buyers (46%) followed by properties priced between INR 1-3 crore, which accounted for 26% of the total. The most popular configuration among Mumbai homebuyers is a one-bedroom apartment.
- The region’s biggest sales were record in peripheral micro markets including such Thane West, Dombivali, Kalyan West, Panvel, and Vasai.
- By the conclusion of the first quarter of 2022, the unsold inventory had increased by 1% to 2, 55,814 units.
- The inventory overhang has decreased to 48 months at the end of Q1 2022. Compared to 62 months at the same time last year, as sales velocity picks up.