Flat sales in Mumbai region up just 3% in 1 year: Report
TNN | Jan 9, 2019, 02:42 IST
Data shows 63,893 flats were sold in 2018 compared with 62,256 units in the preceding year.MUMBAI: Apartment sales in Mumbai Metropolitan Region (MMR) recorded a measly 3% growth in 2018 compared with 2017, stated a Knight Frank India Real Estate report released on Tuesday.
Data shows 63,893 flats were sold in 2018 compared with 62,256 units in the preceding year. On the other hand, project launches shot up 220% to 74,363 in 2018 from 23,253 in 2017. The report stated that average property prices decreased 7% in the region in 2018.
Shishir Baijal, chairman and managing director, Knight Frank India, said, “Mumbai has seen a significant drop of 7% in average prices in 2018, which, coupled with reduced sizes of new launches, has brought down the average ticket size (of flats) in the city.” The number of unsold flats in MMR increased 9% to 1,26,434 in 2018 from 1,15,964 in 2017. “Some developers are tying up with strategic partners/brokers and are offering discounts in the range of 15-30% to clear their inventory,” stated the report. Interestingly, it was affordable houses that continued to drive sales in Thane and peripheral suburbs. Sales in pricier Greater Mumbai under the BMC jurisdiction grew only 1%. Western suburbs were the only market in the BMC region to record a sales growth of 9%.
Among the eight cities surveyed—Mumbai, Hyderabad, Bengaluru, Pune, Chennai, Ahmedabad, Kolkata and National Capital Region—the report found sales increased 6% in 2018 from 2017 even as 76% more flats were launched during the period. Overall, unsold inventory reduced 11%. The report said 2018 was “historically the best performing year” for commercial office market with leasing at 46.8 million square feet. In Mumbai, though, supply was 6.5 million sq ft, denoting a 37% year-on-year decline from 2017.
Data shows 63,893 flats were sold in 2018 compared with 62,256 units in the preceding year. On the other hand, project launches shot up 220% to 74,363 in 2018 from 23,253 in 2017. The report stated that average property prices decreased 7% in the region in 2018.
Shishir Baijal, chairman and managing director, Knight Frank India, said, “Mumbai has seen a significant drop of 7% in average prices in 2018, which, coupled with reduced sizes of new launches, has brought down the average ticket size (of flats) in the city.” The number of unsold flats in MMR increased 9% to 1,26,434 in 2018 from 1,15,964 in 2017. “Some developers are tying up with strategic partners/brokers and are offering discounts in the range of 15-30% to clear their inventory,” stated the report. Interestingly, it was affordable houses that continued to drive sales in Thane and peripheral suburbs. Sales in pricier Greater Mumbai under the BMC jurisdiction grew only 1%. Western suburbs were the only market in the BMC region to record a sales growth of 9%.
Among the eight cities surveyed—Mumbai, Hyderabad, Bengaluru, Pune, Chennai, Ahmedabad, Kolkata and National Capital Region—the report found sales increased 6% in 2018 from 2017 even as 76% more flats were launched during the period. Overall, unsold inventory reduced 11%. The report said 2018 was “historically the best performing year” for commercial office market with leasing at 46.8 million square feet. In Mumbai, though, supply was 6.5 million sq ft, denoting a 37% year-on-year decline from 2017.
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