Homebuying sentiments improved in Mumbai in the first half of 2016 with residential launches and sales growing by 29 per cent and 23 per cent, respectively as compared to first half of 2015, said a survey by real estate consultant.
The Knight Frank’s “India Real Estate Residential and office” report expects the trend in sales to remain healthy in the second half of 2016 as well. The report said,” In H1 2016, the Mumbai Metropolitan Region (MMR) residential market witnessed great momentum after the 2008 global financial crisis. Residential sales momentum is projected to be healthy in the upcoming second half of 2016.”
The survey further added that the sales are expected to grow by 10 per cent in second half of 2016, but the new launches are projected to decline in coming six months.
Price correction, leading to consumer affordability and reduction in unit sizes by as much as 19 per cent are driving home-buying sentiments in Mumbai, which remained a good real estate market along with Bangalore and Ahmedabad in the survey.
Mumbai’s MMR market registered 29 per cent growth in first half of 2016 when overall new launches in residential segment plunged by 9 per cent to 1,07,120 compared to the first half of 2015 – when it was registered at 1,17,200.
According to Knight Frank India survey, the peripheral markets fuelled the MMR’s demand growth in H1 2016. Thane, Navi Mumbai, the Peripheral Central Suburbs and the Peripheral Western Suburbs saw sales grow by 47 per cent, 28 per cent, 21 per cent and 9 per cent, respectively.
It could be the best time for end users to invest in Mumbai residential market as prices according to survey may remain stagnant. “MMR house prices have seen a time correction for the last two years and forecast of a weighted average growth of 1.2 per cent YOY for H2 2016 implies stagnation in the Mumbai residential prices. This would disappoint investors but bode well for the end users and help improve market momentum, ” the Knight Frank India survey added.