Mumbai new residential launches hit a record 6,284 units in Q2

Launches rose by 26% vs the prior quarter.

According to a JLL report, a total of 6,284 units were launched in the high-end segment in Mumbai in 2Q23, up by 26.3% q-o-q and at a record high in the city. Growth corridors in the suburbs were key drivers with more high-end launches recorded there.

New launches were mostly driven by the Thane and Navi Mumbai submarkets, which accounted for 29.1% and 17.4%, respectively. However, key submarkets like South Central Mumbai and Western Suburbs II saw a sequential decline in launches.

Here’s more from JLL:

Sales of high-end residential units recorded a historic high as homebuyers continued to show a preference for bigger homes. Big-ticket deals continued to be recorded in high-demand locations like Juhu, Malabar Hill and Worli, the hotspots for such deals. Industrialists, movie stars, celebrities and the C-suite were recorded purchasing high-end apartments.

Thane accounted for the highest share of 2Q23 sales with 19.7%, followed by the Eastern Suburbs I and Western Suburbs I with 16.9% and 15.3%, respectively. The South Mumbai submarket recorded sales that were almost similar q-o-q. Projects that recorded healthy sales in the quarter included Oberoi Elysian Tower B in Western Suburbs I and The Gateway in Navi Mumbai.

Capital values inch up marginally

Capital values recorded a slight q-o-q rise of 0.9% as the appetite to buy high-end residential apartments remained strong, allowing developers the headroom to increase prices. Increased input material costs were passed onto homebuyers, which was also a factor in the rising capital values. Suburban markets saw higher price growth, with Thane recording the highest q-o-q increase.

Rents were up marginally across all submarkets as demand remained strong among tenants for such projects, especially movie stars and the C-suite.

Outlook: Sustained momentum to continue in the high-end segment

The High-end residential market is likely to continue its momentum going forward, on the back of improved market sentiment and increasing demand for bigger homes.

While higher input costs will continue to be a factor in price discovery, the sales momentum is also likely to support developers as they hike prices in this segment.

Note: Mumbai Residential refers to Mumbai's prime residential market.