‘Residential launches in Mumbai grew by 22% (YoY) in H1 2019’ - Gulam Zia

<a href="http://realtyplusmag.com/">Realty+</a> witnessed the launch of 11th edition by Knight Frank India flagship half-yearly report - India Real Estate on June 9, 2019. The report presents a comprehensive analysis of the residential and office market performance across eight cities for the period

BY Realty Plus
Published - Jul 10, 2019 5:13 AM

Share It

Realty+ witnessed the launch of 11th edition by Knight Frank India flagship half-yearly report - India Real Estate on June 9, 2019. The report presents a comprehensive analysis of the residential and office market performance across eight cities for the period January – June 2019 (H1 2019). The report findings establish that the number of residential launches in Mumbai increased by 22% in H1 2019 to 43,822 from 35,874 in H1 2018. The housing units sold saw an increase of 4% in H1 2019 to 33,731 from 32,412 in H1 2018. Mumbai’s office market witnessed 61% increase in volume of office space transacted in H1 2019 to 0.43 mn sq m (4.6 mn sq ft) from 0.27 mn sq m (2.9 mn sq ft) in H1 2018. The Other Services sector, which includes media, consulting, ecommerce, co-working, etc. continued to dominate transaction activity in H1 2019 garnering 39% share of total transactions followed by BFSI at 34%. RESIDENTIAL MARKET HIGHLIGHTS OF MUMBAI:

The launches growth tapers to 22% year-on year (YoY) during H1 2019, after registering a stellar 220% YoY growth in 2018.
62% of the launches during H1 2019 were in the sub-INR 7.5 million ticket size and 82% were below INR 10 million ticket size.
Thane market witnessed the largest quantum of new launches on account of new projects launched by some of the country's biggest corporates.
During H1 2019, sales in MMR grew marginally by 4% YoY to 33,371 units.
Sales in H1 2019 were affected by two major events- GST ambiguity and election uncertainty.
Homebuyers yet to benefit from RBI’s policy rate reductions, banks have passed on only 10-30 bps out of the 75-bps cut by RBI in 2019.
GST change has failed to enthuse homebuyers; most developers have opted for earlier GST regime for 12% with ITC for on-going projects.

Gulam Zia, Executive Director– Valuation & Advisory, Retail & Hospitality, Knight Frank India said, “The mood of residential realty in Mumbai continues to be sombre and withdrawn. With more skeletons tumbling out of NBFC cupboards the shadows on Indian housing industry are getting longer. The respite offered in the finance bill may still not be able adequate to pull the sector out of its current situation to rescue a few more developers who’re already on the brink of an imminent collapse. Affordable housing segment has emerged as a silver lining in these dark clouds. The finance minister has announced more sops for this segment to step closer to the dream of “housing for all”. The developers who desire to remain relevant after this catastrophic period of downturn will have to recalibrate their business models and focus on creating more affordable homes.” Also read http://realtyplusmag.com/maha-govt-says-builders-need-not-surrender-excess-land/ Volume of office space transacted in the city record 61% rise (YoY) in H1 2019 COMMERCIAL MARKET HIGHLIGHTS OF MUMBAI:

The transaction activity in the Mumbai Metropolitan Region (MMR) office market was strong 0.43 mn sq m (4.6 mn sq ft) in H1 2019 registering a growth of 61% YoY.
There were several large transactions in H1 2019, which involved occupiers from the Banking, Financial services and Insurance (BFSI) segments, Other Services sector and co-working players.
In H1 2019, new completions dropped by 56% year-on-year (YoY) at 0.18 mn sq m (1.9 mn sq ft).
Only three out of six business districts witnessed addition in supply in H1 2019 – peripheral business district (PBD), suburban business district (SBD) Central and SBD West.
The SBD Central market has been gaining traction, witnessed 143% YoY growth in transactions in H1 2019.
PBD had the highest share of transactions in H1 2019 at 31%. SBD West and SBD Central, combined, garnered 50% share of the transactions in H1 2019.

Gulam Zia, Executive Director– Valuation & Advisory, Retail & Hospitality, Knight Frank India said “The office market has been growing steadily across India with strong record of transactions each successive year. Mumbai witnessed record half-yearly growth in transactions led by occupiers in BFSI and other service sectors. While the vacancy levels remain elevated, we have a scenario where preferred markets in the city have significantly low vacancy levels. SBD Central has been witnessing significant growth in occupier interest over the past few years and would soon join the list of markets with constricted supply such as BKC and Central Mumbai.”

Share It

Tags : News/Views Mumbai Real Estate Knight Frank Knight Frank India Executive Director Realty+ Gulam Zia Residential sector