Credai MCHI in association with CRE Matrix has released a new report today titled ‘MMR Housing Report 2021’ that highlights a positive uptrend in the MMR Real estate market. The report states that the year 2021 (Jan – Dec 2021) is on its way to become one of the best years for Real estate annual sales as compared to the preceding 4 years (2017 -2020). The total sales of housing units in MMR is at 1,71,165 touching a value of INR 1,33,015 Crores till the month of August 2021, the trend is expected to continue making 2021 a record breaking year.
Speaking on the upward trajectory, Deepak Goradia, President, Credai-MCHI, said, “Positive policy amendments like reduction of stamp duty, reduced home-loan rates, various financing and other offers run by developers and increase in importance of owning a house due to pandemic have contributed to this trend. The industry is finally seeing a green shoots of revival after a flat growth for half-a-decade and we are confident that this trend will continue till the end of this year given the upcoming festive season.”
The key takeaways from the report:
- South Mumbai & Central Mumbai Markets have witnessed a massive turn-around in terms of unit sales for Jan-Aug’ 2021 compared to pre-pandemic years of 2017, 2018 & 2019. Amazingly, the sales figures in the period of Jan-Aug 2021 is more than full-year sales of the years 2017, 2018, 2019 & 2020. More than 90% of Housing Sales in this region are priced above INR 2Cr.
- In Jan-Aug’2021 period, Eastern Suburbs have surpassed the sales units, the value of units sold and area sold over the last 5 years. Also, it has seen improvement in sales of units priced above Rs 1 crore. Apartments priced above INR 1cr per unit contribute about 80% of housing sales in Value terms.
- Western Suburbs is the largest macro-market of Mumbai with housing sales in the period Jan-Aug 2021being more than full year sales of 2017, 2019 and 2020. Although housing sales in the period Jan-Aug 2021 is less than full-year sales of 2018, we believe full-year sales of year 2021 will surpass 2018 in the remaining 4 months.
- Thane District has witnessed an upward trend in the housing prices over the last 5 years. An affordable market compared to Mumbai, it is witnessing sales of higher ticket size units compared to sales in the last 5 years.
The Covid-19 pandemic and the resulting lockdowns have caused significant disruption for developers, buyers and industry at large. However, the housing demand in Maharashtra bounced back with the breakthrough move of stamp-duty reduction coupled with several banks cutting their home loan rates ahead of the festive season. Additionally, the developers have also rolled out exciting discounts & offers to entice potential customers who have been lying low since the pandemic outbreak.