Mumbai Metropolitan Region Vantage Point
Even During The Overall Real Estate Downturn Across Mumbai, The Residential Real Estate Markets Of Mumbai Metropolitan Region (MMR) Remained More Or Less Stable Due To A Few Key Factors.
By: Sapna Srivastava
The Mumbai Metropolitan Region (MMR) counts Thane, Kalyan, Navi Mumbai, Virar and Panvel as the new growth centres of residential realty. Almost 63 percent of sale transactions in these areas during FY20 were at a 20 percent premium to ready reckoner rates, as per the study by Propstack, a data analytics firm.
In fact, in the last decade MMR witnessed a 33% increase in property prices. The average price recorded in the region in 2010 was ₹7,965 per square feet, while in Q1 2020 it had increased to ₹10,610 per square feet. In the 2000-09 decade, the city saw a whopping 67 per cent jump in prices, the highest among all cities.
However, due to the covid outbreak, MMR has recorded the highest YOY drop in terms of housing supply by a whopping 61 percent. Even though developers across the country were able to sell nearly three percent of their unsold inventory with a marginal decline of just one percent on a quarterly basis, MMR recorded a significant decrease in the trimming of inventory by 42 percent.
On a brighter side, this has made properties in MMR more attractive for buyers ready to make a deal. Especially during the current pandemic, with WFH or rotational work days becoming a reality even going forward, people are ready to buy homes on city outskirts.
WHAT’S ATTRACTING HOMEBUYERS
Affordability is the biggest pull of MMR locations. More than 60% of housing stock in these areas are within the price range of ₹80 lakh. In addition, the Maharashtra Housing Development Corporation (MHDC) plans to ally with the Mumbai Metropolitan Region Development Authority (MMRDA) for the speedy delivery of low-cost housing units. The corporation aims at building five lakh affordable homes under the Pradhan Mantri Awas Yojana (PMAY) by 2022.
Connectivity is another major deciding factor. Thane, Panvel, Navi Mumbai with superior connectivity are emerging as the residential realty growth hub, being wellconnected to the main city for a visit to the office. This isalso the reason for many large realty firms like Hiranandani Contruction, Godrej Propert, L&T, Piramal Realty to name a few, building major townships here. This also ensures availability of good quality projects and best practices being followed by developers.
Social infrastructure too in MMR is now well developed with presence of plenty of recreational venues as well as malls boasting best of local and foreign retail chains. The hospitality & F&B brands too are expanding their footprint in MMR on the back of rising disposable incomes in the region.
The added advantage MMR presents over other popular Mumbai localities is the available vast green spaces and in case of Navi Mumbai a well laid out green city. Not surprisingly, many homeowners are shifting from older parts of Mumbai to MMR for a bigger home and a better lifestyle.
COVID IMPACT ON MMR REAL ESTATE
A number of transactions for commercial and residential properties were registered in the MMR region after the state partially reopened in May. The market is slowly returning to normalcy with affordable housing garnering maximum traction. Though many of these transactions were already in pipeline before Covid struck and were completed once government offices reopened. However, the pace of deals signal a recovery better than many other cities of the state and across India.
In MMR, out of the total 18,500 ready homes, approx. 46% are in the affordable segment, followed by 18% in the mid-segment, 18% in INR 80 lakh to INR 1.5 Cr price bracket and the remaining 18% in the luxury segment. Currently, ready-to-move homes dominate buyer preference, but there is still a good traction for underconstruction homes with 6-12 months delivery timelines. MMR is witnessing enquiries for homes priced within INR 60 lakh to INR 1.2 Crore, for property sizes between 400- 800 sq. ft. carpet areas.