Navi Mumbai Witnesses 5% Increase in Apartment Size
By Knight Frank
What has been the trend in residential realty of Navi Mumbai?
With the increase in demand for larger home space owing to the on-going pandemic, the apartment size in new launches in Navi Mumbai has seen a rise of 5% to 722 sq ft in H2 2020 compared to 685 sq ft in 2019, according to Knight Frank’s latest India Real Estate H2 2020 report. The city registered residential sales of 2,384 units YoY in H2 2020 and new launches at 2,860 units YoY during the period. Home sales in MMR witnessed a rise of 10.39% YoY to 30,041 units in H2 2020 and new launches saw a decline of 25.26% YoY to 26,904 units.
What are the reasons for the rise in sales?
The boom in residential sales can largely be attributed to the recent State Government announcement of stamp duty reduction from 5-7% to 2-4% across various MMR regions effective for 7 months from September 2020. As homebuyers in the mid and high-income groups have made most of the lower stamp duty window, 57% of units sold in MMR were in the >INR 5 million (>INR 50 lakh) segment. Residential property prices in the areas of Kharghar (6,700 – 9,000 psf) and Panvel (3,800-6,500 psf) have witnessed a -4% YoY correction, while prices in the residential market of Vashi (10,000 – 15,000 psf) witnessed a minor correction of -2% YoY in H2 2020.
What are the advantages of Navi Mumbai as a residential hub?
In the context of connectivity and infrastructure development, Navi-Mumbai is well connected to Mumbai with railway networks and the Vikhroli-Kopar Khairne Link Road, as well as to Pune with railways and the Mumbai Pune Express Highway. The area of the city was developed to be an organised and planned extension of Mumbai, which is why it has planned sanitation, progressive transit infrastructure and numerous, well-spaced out social infrastructure provisions such as parks, schools, gymnasiums. Navi Mumbai already has a fully functioning JNPT shipping port and plans to house Mumbai’s second international airport at Panvel.
What is the average size of apartments in new launches?
Micro-market : Navi Mumbai
2014 (in sq. ft.): 857
2019(in sq. ft.): 685
Shrinkage (2014-19): -20%
H2 2020 (in sq ft): 722
Increase (2019-H2 2020): 5%