With Mumbai’s real estate witnessing a surge in sales and bookings, real estate developers and property advisors expect far better sales during the upcoming festive season.
In September 2023, the Mumbai realty market reported bookings of over 10,602 residential units according to data collected by Palladian Partners, up 32% from the same period last year and the stamp duty revenue also reportedly surged 53% year-on-year making it possibly a lucrative realty market, analysts said.
“The remarkable performance in terms of bookings and a 53% year-on-year increase in stamp duty revenue have ignited optimism for the forthcoming festive season, making it one of the most remarkable success stories in the city’s real estate sector,” said Chandresh Vithalani, Director Palladian Partners LLP, a property advisory firm.
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He said the stable ready reckoner rate, increased consumer confidence, the need for personal space post-Covid and the strategy of developers to quickly adapt to evolving market conditions, have helped in the revival of the market.
“The success of September, 2023 has set the stage for a promising festive season in Mumbai. As the city approaches the Dusshera and Diwali celebrations, there’s an air of optimism in the real estate sector. The festive season traditionally witnesses a spike in property purchases, and this year’s enthusiasm is expected to be higher than ever,” he added.
Anuj Puri, Chairman of Anarock Group said the Bengaluru residential market continued its growth stint in Q3 2023, despite the usually slow monsoon quarter.
“Latest Anarock Research data shows that Q3 2023 saw housing sales of almost 16,400 units in the third quarter against approx. 12,690 units sold in Q3 2022. This denotes a staggering 29% annual sales growth,” he said.
“Interestingly, after NCR, Bengaluru stood second among the top 7 cities in reducing its overall unsold stock in a year. As on Q3 2023-end, the unsold inventory in Bengaluru stood at approximately 49,350 units which is over 16% less than the corresponding period in 2022. Back in Q3 2022-end, the unsold stock in the city was 58,880 units,” he added.
Demand in the city is largely driven by the IT/ITeS sectors with buyers mostly preferring homes in the mid and the premium segments priced within ₹40 lakh to ₹1.5 crore, he further said.
“This momentum is likely to continue in the ongoing festive quarter as well as there is an unrelenting quest for homeownership post the pandemic and an upsurge in new supply by the branded developers which buyers are preferring today. The recent repo rate pause is another factor that will keep the momentum going,” Mr. Puri added.
According to Prashant Thakur, Regional Director & Head – Research, Anarock Group, developers in general have been bullish about the luxury homes segment because of its superlative performance after the pandemic, with overall sales rising steeply across the top 7 cities.
“Post pandemic, homebuyers have been seeking bigger homes and apart from high-end amenities and good location, luxury housing is primarily defined by generous floor space. Anarock’s most recent consumer sentiment survey also reflects this trend. In the pre-Covid edition of the survey (H1 2019), 9% respondents preferred luxury homes priced ₹1.5 crore while in the current edition of H1 2023, this share has risen to 16%,” he added.
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