A latest report by leading digital real estate consultancy, Proptiger.com, has shown a sharp increase in demand for premium homes in Mumbai and Pune cities during the second quarter of 2023.
In Mumbai, demand for houses in the ticket price of INR 1 crore and above increased by 28 per cent in the second quarter of 2023 compared to 23 per cent in the pre-pandemic period in the second quarter of 2019. Notably, sales in the same price range in Pune city doubled during the same period.
The unique growth of real estate in Mumbai and Pune reflects the priority given to cities and their potential for sustainable investment opportunities. Both cities, with a positive outlook and strategic planning, offer exciting opportunities to those looking to buy a dream home or invest in large sums, experts stated.
Mumbai (MMR):
In Mumbai, the new supply of residential properties declined to 33,330 flats in the second quarter of 2023, a 23 per cent year-on-year decline, as compared to 43,230 flats in the second quarter of 2022. However, new supply of residential properties reached 93,330 flats in the first half of 2023 (January 2023 to June 2023) with a half-year growth of 27 per cent as against 73,580 flats in the first half of 2022. Most of the new projects were launched in the micro markets of Thane West, Dombivli and Panvel, where these peripheral areas are under the spotlight compared to the main city.
Notably, 31 per cent of the flats launched are in the price range of INR 45 to 75 lakh, followed by 25 per cent units in the price range of more than INR 1 crore. Sales in the second quarter of 2023 were up 16 per cent year-over-year, and the first half of 2023 was up 27 per cent over the first half of 2022.
Mumbai maintained its dominant position in the national sales figures with the highest share of 38 per cent. The preferred locations for home buyers in the second quarter of 2023 were Thane (West), Dombivli, Panvel, Vasai and Bhiwandi. These areas offer financial opportunities and city life similar to Mumbai at much lower prices than the major suburbs.
While Mumbai accounted for 36 per cent of the unsold flats of 9.44 lakh in the top 8 cities, the inventory overhang reduced to 33 months by the end of Q2 2023, which was 38 months for the same period last year. This decline is attributed to steady growth in sales.
Pune:
The real estate market in Pune reported an increase in new supply to 26,610 flats in the second quarter of 2023 at a year-on-year growth of 99 per cent in the second quarter of 2023 as compared to 13,390 flats in the second quarter of 2022. It also recorded an increase of 114 per cent to 62,100 flats in the first half of 2023 (January 2023 to June 2023) compared to 28,970 flats in the first half of 2022.
Places like Charholi Budruk, Hadapsar and Punawale saw the highest number of new apartment launches, catering to the growing demand.
Residential sales in Pune increased to 18,850 flats in the second quarter of 2023 (January 2023 to June 2023) from 13,720 flats in the second quarter of 2022 (April 2022 to June 2023) with a year-on-year growth of 37 percent, and from 30,030 flats in the first half of 2022 in the first half of 2023. (January to June 2023) reached 37,760 flats with a half-year growth of 26 percent. Demand for properties in the industrial belts of Hadapsar, Charholi Budruk, Tathwade, Ravet, Hinjewadi remained strong.
In terms of price range, the majority of demand (36 per cent) was seen for flats in the INR 45 to 75 lakh range. Flats in the INR 1 crore and above price bracket accounted for 14 per cent of total sales in the second quarter of 2023, compared to 5 per cent in the pre-pandemic second quarter of 2019. In the second quarter of 2023, 53 per cent of the flats sold were in the 2 BHK configuration, while 25 per cent of the flats sold were in the 1 BHK configuration.
Experts further stated that there has been a huge increase in demand for high-end properties in cities. More and more mobile buyers are preferring these properties as a lifestyle and safe haven, especially in the post-pandemic era. Demand for houses in Pune has seen a shift from the mid- to high-end segment, that is INR 1-3 crores. Demand for affordable housing saw a remarkable increase of 117 per cent in the second quarter of 2023 compared to the pre-pandemic period of 2019.
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