The demand for residential units in Mumbai and the Mumbai Metropolitan Region is on an upswing for the second straight quarter of FY 22. As many as 20,000-plus new units were launched across the region, with the demand being the highest in the Rs 60 lakh to Rs 1 crore range.
Zone-wise, the Central Suburbs dominated the supply of new residential units, followed by the Western Suburbs. Interestingly, in spite of several headwinds, including, among others, the raising of stamp duty, imposition of metro cess, as well as the rise in lending rates in Q2 FY 2022, Mumbai still showed a growing demand for supply of new residential units.
The demand for 1BHK units and ‘above 4BHK’ units exceeded the supply – 60 percent against 53 percent, and 3 percent against 1 percent, respectively. The demand for 2BHK, 3BHK, and 4 BHK units was lesser than the supply (29, 7, and 1 percent against 34, 10, and 2 percent, respectively). That said, overall, the demand for larger units seems to have taken a backseat. Units designated as 3BHK and above comprised only 13 percent share of the total online searches.
In comparison, the demand for smaller units (1 BHK and 2 BHK) witnessed a significant growth similar to that seen in the previous quarter. Their demand stood at 60 percent and 29 percent, respectively. This skewness in demand for smaller configurations, though always prominent in the MMR market, once again seems to have returned to the mainstream after two consecutive quarters (Q4 2021 and Q1 2022). Overall, the supply was also in sync with the demand trends, with 1BHK units registering a 53 percent share of the inventory, followed by 2BHK residential units at 34 percent.
As for the ticket size, as revealed by the Square Yards’ online search trends, properties worth less than Rs. 30 lakh saw an overall decline as compared to Q1 2022. On the other hand, the demand share of the residential units in the Rs. 60 lakh to Rs. 1 crore bracket stood at 39 percent, which could be attributed to the buyers’ preferences for more affluent homes.
About 43 percent of the total inventory comprises residential units worth Rs 1 crore and above. As to the type of property, buyers in the Island City still preferred apartments over other types of dwellings. The demand and supply for apartments stood at 79 % and 98%, respectively.