Critical Analysis of Housing in Mumbai Metropolitan Region - 2024 (Report on Housing by CREDAI-MCHI and CRE Matrix)

CREDAI-MCHI has recently published a report on the Housing in Mumbai Metropolitan Region in association with CRE Matrix . The report is a highly valuable resource that delves into the performance of the real estate sector in the Mumbai Metropolitan Region. Some of the key takeaways of the report are very interesting and are as follows :

1. The Mumbai Metropolitan Region observed a 5% increase in unsold inventory in FY'24 over FY'23.
2. Despite a drop in new launches in FY'24, the ration of demand to supply in FY'24 stood at 0.82% which is the highest compared to the previous years.
3. A record number of 132112 housing units were sold across the Mumbai Metropolitan Region in FY'24 which indicates a strong demand in the housing market.
4. Key areas like New Mumbai has witnessed a 54% surge in new housing project launches in FY'24, compared to FY'23 and the same can be attributed to better connectivity and infrastructure development.
5. Areas like Raigad also saw an increase of 17% in the launch of new housing scheme in the same timeline.
6. The reports observe a rise of almost 5% in housing sales in FY'24 , compared to FY'23.
7. Key micro market like South Mumbai recorded a massive increase of 41% in sales in FY'24, followed by New Mumbai at 22%. This answers a lot of critics who envisaged a fall in sale prices and housing search by home buyers in the south Mumbai area. On year-on-year basis, South Mumai market has witnessed a healthy growth in terms of housing sales. However, new apartment launches have declined to almost 50% in the south Mumbai area.
8. The reports showcase the average value of housing unit with an upward trajectory at 11% in FY'23 compared to FY'22 and again a 4% increase in FY'24 compared to FY'23.
9. Key micro markets like Bhiwandi, New Mumbai, Thane and Mira Bhayandar also recorded a 7% to 12% appreciation in the housing value. Nevertheless, the maximum house price increase has been recorded in the Palghar area of MMR with a staggering 25% increase in value of housing units.
10. A drop of 12% in the unsold units have been observed in the central Mumbai micro market while the rest of the micro markets have witnessed increase in unsold units. On the other hand, housing values went down by 7% in the central Mumbai micro market in FY'24 compared to FY'23.
11. For western suburbs of Mumbai, sales of housing surged by 13% in FY'24 but the housing launches declined by nearly 35% in FY'24, compared to the previous year. Also, it is noteworthy that housing unit value in western suburbs enjoyed a decent appreciation of 3% in FY'24, compared to the previous year.
12. Thane saw a 9% increase in sales compared to past year, but new launches decreased by 38% in FY'24. Thane saw a very decent price appreciation of 11% in FY'24 compared to FY'22.
13. New Mumbai with a 22% uptick in housing sales also witnessed 54% increase in new housing project launches, with a 10% price appreciation of housing units in FY'24 vs FY'23.
14. Kalyan Dombivali micro market saw a decline of 11% in launches of new housing units in FY'24. But the value of housing units saw an appreciation of 5% in last 1 year.
15. Badlapur and Ambernath market saw a decline of massive 32% in new housing project launch this year, compared to the previous year. Average apartment value in FY'21 was Rs. 24.97 lakhs which rose to Rs. 27.83 lakhs in FY'24.
16. Vasai Virar micro market suffered a 6% decrease in housing sales compared to last year which also resulted in 9% less housing projects launched this year. At the same time, the housing value has been constantly increasing with 12% change recorded in FY'24 to FY'21.
17. A key micro market - Panvel saw 16% decline in new housing project launches in 2024 and unsold inventory increased by 9% in FY'24 compared to the last year. However, the housing unit value saw an appreciation of 10% in Panvel.

A big shout out to the team of CRE Matrix under the leadership of Abhishek Kiran Gupta and his research team and also to the CREDAI MCHI research convener Dr. Adv. Harshul Savla MRICS for such an insightful report.