Nearly 54% of MMR housing supply below INR 80 lakh - ANAROCK Report
Mapping Mumbai's emerging suburbs as the new growth corridors
· 65-70% of MMR's housing launches in peripheries
· Nearly 54% supply priced below INR 80 lakh
· At 0.2 million units, MMR has 37% of unsold inventory in top 7 cities
Mumbai, 15 November 2018: Between 65-70% of new housing launches in the Mumbai Metropolitan Region has been its emerging suburbs, states ANAROCK's latest report 'The Peripheries – Greater Mumbai’s Future Suburbs'.
As knowledge partners for the event, ANAROCK unveiled the report at Economic Times' ACETECH real estate trade fair in Mumbai today.
In the process of scoping out MMR’s new real estate growth corridors, this report clearly illustrates how the rising property prices in Greater Mumbai are leading to a natural housing demand progression towards the peripheral areas.
While Mumbai’s share in overall launches in MMR declined from 71% in 2013 to 67% in first three quarters of 2018, Navi Mumbai has witnessed an increase in share from 9-17%.
Due to the expansion of city limits from Greater Mumbai to the peripheries, more than 1.8 lakh units since 2013 have been launched in the western and central peripheral regions.
The report provides highly granular launch, absorption, unsold housing stock and pricing data and trends, pitching MMR’s western peripheral suburbs against its western suburbs and its central peripheral suburbs vs. the central suburbs.
The report confirms that Mumbai’s western and central peripheral regions have witnessed more than 90% of the launches within the affordable and mid-segment (priced less than INR 80 lakh).
This shift underscores a major evolutionary change in Mumbai's real estate market, which was in previous years dominated by high-end and luxury housing.
Overall, since 2013, nearly 54% of the supply in MMR came in price band below INR 80 lakh, with the remaining additions falling in the categories of above INR 80 lakh.
As of Q3 2018, nearly 0.2 million units remained unsold in the region. MMR accounts for around 37% of the overall unsold units across the top 7 cities in India. Unsold inventory in MMR has witnessed a growth of nearly 56% till the end of Q3 2018 over 2013.
Aggressive launches between 2013 till 2015 have added to the unsold stock. However, post-2015, with restricted launches and stable absorption rates the market has reversed its trend and the unsold stock has started to decline.
Report Highlights:
· The majority of unsold stock in MMR is in Mumbai and its peripheral areas. Thane city and Navi Mumbai account for nearly one-third of the unsold stock in the region – a fairly steady trend over the past 5 years
· With 15-20% of the overall supply in MMR, Navi Mumbai has clocked the highest price appreciation during the past 5 years
· Since 2013, nearly 1.8 lakh units were launched in MMR’s western and central peripheral - nearly 1/3rd of the overall launches
· Unsold stock in central suburbs increased from 20,600 units during 2013 to 34,400 units by the end of Q3 2018
· Unsold stock in the western peripheral suburbs has declined by nearly 32% till Q3 2018 since 2013