Real estate sales grow 60% during lockdown
An independent report states central suburbs and Navi Mumbai have recorded a spectacular increase, Thane has seen a slump
The real estate sector in the Mumbai Metropolitan Region (MMR) has recorded a substantial recovery in the July-September quarter. As per a report released by Liases Foras, an independent non-brokerage firm, city developers have registered an increase of 60 per cent in sales compared to the June quarter. The number of housing units sold shot up from 6,421 in the June quarter to 10,251 units by September-end. The city had sold 16,945 units in the second quarter of 2019.
Barring Thane, which recorded a drop of 8 per cent, all MMR segments recorded more than 40 per cent increase in sales. As per the report, the central suburbs have shown a 120 per cent growth, and Navi Mumbai region has recorded the maximum of 312 per cent increase. In the island city, sales recorded a quarter-on-quarter increase of 87 per cent. The number of units sold increased from 204 to 382 in the second quarter, though much lower than 544 units sold in the second quarter of 2019. The central suburbs, which had recorded a sale of 1,458 units in the second quarter of 2019, saw sales shooting up from 538 in April-June this year to 1,181 by September.
The western suburbs, the extended central suburbs, and extended western suburbs, all recorded sales increase from 40 per cent to 48 per cent. Navi Mumbai appeared to be on the recovery mode the fastest, with sales jumping up from 346 units from April-June to 1,424 units from July-September. The satellite city had sold 1,719 units in the second quarter of 2019.
Other indicators also signalled a substantial recovery in the sector. New launches in MMR increased more than 200 per cent from 1,998 units to 6,760 units, though it is nowhere near 16,075 units launched in the second quarter of 2019.
The managing director of Liases Foras, Pankaj Kapoor said the recovery in the real estate market is driven by the offers and discounts from builders, coupled with government's reduction of stamp duty, and lower interest rates of home loans. He said, "These factors have improved the affordability for the consumers, leading to fence sitters stepping forward to invest."
Explaining the slump in Thane and the uptick in Navi Mumbai, Kapoor said, "Navi Mumbai offers a very broad range of price-band with homes available from Rs 3,500 per sq ft to Rs 15,000 per sq ft. In Thane, the minimum price point is Rs 8,000 per sq ft and nothing is available below that mark."
●Extended western suburbs:40%
●Central suburbs:120% growth
●Navi Mumbai: 312% growth