Mumbai's luxe housing market overhang in city’s south and central parts
While experts had voiced their concern a few years ago with regards to the unsold inventory levels and impending launches in this specific micro-market, the performance since the outbreak of the pandemic has surprised many of them.
The market has witnessed sales of over 722 apartments priced at ₹10 crore and above as against new launches of 532 apartments in the last 12 months, showed data from non-broking research firm Liases Foras Real Estate Rating & Research.
«The south and central Mumbai's ultra-luxury housing market has shown almost three times sales growth driven by the segment's new launches. The ultra-luxury segment touched its best-ever inventory overhang in the last 15 years,» said Pankaj Kapoor, managing director, Liases Foras.
In 2021, the market comprising south and central Mumbai had a total of 118 months' inventory and the same has now declined to 38 months.
«Buyers are active in the market and are very choosy as many developers promised early delivery but did not deliver.
This market for luxury is certainly for ready properties. There is a key difference in inventory and ready apartments.
Most of the luxury properties that are being sold are either close to completion or ready projects,» said Vikas Oberoi, CMD, Oberoi Realty.
According to him, the higher the ticket size, the lower is the homebuyer's appetite for waiting as they are ready to pay a premium and do not wish to assume any risk in terms of delivery and quality.
«There are tailwinds in the market and general positive consumer sentiment towards ownership of spacious apartments. This can be seen accentuated in the south, central Mumbai, and certain pockets like Bandra in Mumbai,» said Vikas Chaturvedi, CEO, Xanadu, a specialised sales
