Stay Updated With the Changing Real Estate Trends of MMR
The last couple of years has been dicey in every aspect of real estate. The constant ups and downs seen in 2020 and 2021 changed the way various businesses involved in real estate function. It also introduced several newer ways of running various processes and real estate innovations.
Let us look at a quick recap of the last two years and then see what 2022 may have for the real estate industry in future.
The Highlights of Mumbai’s Real Estate in 2020
The year 2020 was meant to be a year of recovery for Mumbai’s real estate sector, especially the housing segment. After three years of business disruptions caused by demonetisation, implementation of GST and the realty law RERA, and the NBFC crisis, the market had started stabilising.
But all hopes were thwarted as the COVID-19 global pandemic hit India, forcing the government to impose a national lockdown for over two months to curb the spread of the deadly disease.
According to data available from the Department of Registration & Stamps, Diwali, 2020 saw the highest sales since November 2018.
Housing sales in Mumbai gathered momentum in Oct-Dec 2020. Over 6,000 units were sold in the quarter with Andheri-Dahisar and Goregaon-Malad belts grabbing the maximum popularity share. Ready homes priced within INR 80 lakh to INR 1 crore remained the most preferred. Besides, freshly launched projects offering premium amenities and discount offers also drew end-users.
According to the same report, a 20% growth in new launches, particularly in the budget range of INR 50-80 lakh led some price-sensitive buyers to close deals. Grade B developers, including Sethia Group and Paradigm Realty, accounted for maximum new launches in Andheri West, Kandivali East and pockets in Mira Road and beyond.
Stamp duty cut boded well for Mumbai Harbour and South-West Mumbai as demand for ultra-luxury properties in INR 2.5-5 crore budget segment increased for the first time in the last couple of years. A few premium locales that benefitted the most include Byculla, Lower Parel, Worli and Juhu.
Office leasing trend in Mumbai improved in Q4 2020. Net office space absorption in the city nearly doubled to one million sq. ft. in Q4 2020 against 0.46 million sq. ft. in Q2 2020.
A subdued number of new launches and improved sales augured well for the unsold residential inventory, which dipped by nearly 10% to stand at almost 60,000 units by the end of December 2020.
The rental market in Mumbai took a beating in Oct-Dec 2020 amid the restrained demand. Despite offering a 10%-15% discount on monthly rentals, landlords failed to entice home seekers. Overall, the city’s home renting trend continued to dwindle with an approximately 20% drop in rental enquiries.
The Key Aspects of 2021
In 2021, we witnessed a bull run not only in real estate stocks but also in the broader market. Ample liquidity targeted the stock markets on the back of satisfactory ROI expectations. As such, confidence at the beginning of 2021 was high and real estate developers, as well as brokers, were well-prepared to face any possible future disruptions. 2021 was a time when residential real estate witnessed a meteoric bounce back from the aftermath of the pandemic. The need for owning your own home regained its paramount importance for every Indian family. Falling interest rates and stamp duty cuts acted as the much-required catalyst to the growing demand for owned homes. The pandemic had made people value home more than ever before and were now more particular about their choices.
It was seen that the market has scaled a new 10-year peak as it surpassed the mark of 1 lakh registrations in a year.
Property registrations during the January-November period were 122% higher than a year ago, while the government has earned a revenue of INR 5,351 crore between January to November 2021, showed data from Knight Frank India.
Mumbai’s Real Estate Forecast for 2022
Mumbai’s residential real estate market seems to have embarked on a long-term upcycle, and 2022 is very likely to be far better than 2021. As per various experts and our own study of the market, we feel these will be the major real estate trends to look forward to in 2022.
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According to the 2022 Outlook Report by Knight Frank, the complete Indian residential segment to witness around 5% capital value growth in 2022. Many of the supply and demand-side factors, assessed over the last decade, have started putting upward pressure on house prices. Residential sales momentum is expected to continue in 2022 as prospective homebuyers’ preferences for bigger homes, better amenities and attractive pricing will keep them interested to seal the deals.
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Talking about Mumbai, launches will rebound sharply in the coming year owing to the government announcing cost benefits on projects until December 31. That has led to a sharp surge in activity – especially in redevelopment.
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Real estate across asset classes including residential, warehousing and commercial is expected to be more stable in 2022 driven by improved consumer sentiments and return to the office.
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The sharp V-shaped recovery that we have observed, makes it evident that the growth trajectory will continue into 2022 and beyond. With favourable low-interest rates for home loans likely to continue and the introduction of innovative, flexible EMI schemes, the current time is perfect for homebuyers to invest in their dream home.
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During the past couple of years, owing to the pandemic, homebuyers have realized the importance of well-planned homes with proper amenities for living a healthy life. As such, the trend of homebuyers shifting to sustainable township living will see an increase. The well-planned townships bring everything like schools, hospitals, offices and the best of amenities within walking distance. With sustainability and wellness becoming the new living mantra, the shift towards premium township living is evident where the concepts of “walk-to-work” or “work near home” become a reality, thus improving the overall quality of life.
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The rise in young homebuyers has been seen as a rising trend and this will continue to increase. Many young working individuals who used to stay on rent, have started moving into owned homes rather than rented homes, due to the uncertainty of the Covid-19 pandemic that they experienced in the past couple of years. As such, developers are also providing numerous options like studio apartments and 1 BHK homes that fit into the budget of first time home buyers and also help individuals take advantage of the Government's affordable housing scheme. In township projects, one can find a plethora of choices as per the individual budget and liking and as such it is the most sought after option for the current homebuyer as it promises a future of sustainable growth and healthy living.
To summarise it all, if you intend to invest in the Indian real estate market, 2022 can most definitely be your year. And with township living becoming the most sought after trend for the first time as well as premium homebuyers, the townships of Hiranandani Gardens in Powai and Hiranandani Estate in Thane, provide the most opportune location in the best-integrated townships of Mumbai Metropolitan Region. These townships provide a holistic environment with the best of schools, hospitals, business districts, lifestyle amenities and unmatched civic infrastructure. So just log onto www.hiranandanioffers.com and explore the plethora of choices in these townships and finalize your dream home or office space today.