The sale of residential units in Mumbai rose by just 3 percent in 2018, compared to the aggregate 6 percent growth witnessed across the country’s eight major cities, according to a Knight Frank report.
According to the report by the global real estate consultancy firm, 2.42 lakh units were sold across eight major cities in 2018 compared to 2.28 lakh units in 2017.
The report attributed the improvement in demand to a better regulatory environment, falling prices, and indirect discounts.
“The residential market saw some upward movement in sales velocity, but the year stopped short of being a year of recovery. Total sales of residential units were estimated to be 242,328 registering a 6 percent increase over 2017,” said the Knight Frank’s July-December report on residential and commercial real estate.
Among the cities surveyed, Bengaluru recorded the highest annual increase in sales of 27 percent at 43,775 units last year, on the back of economic stability and job security.
Sales in the National Capital Region (NCR) witnessed an 8 percent increase in sales at 40,643 units in 2018.
With 63,893 flats sold in 2018 compared with 62,256 units in the preceding year, MMR saw a 3 percent rise in sales. However, average property prices decreased 7 percent due to the reduced sizes of flats in new launches.
The number of unsold flats in Mumbai also increased by 9 percent to 1,26,434 in 2018.
Among the other cities, Chennai and Ahmedabad recorded a 3 percent rise in sales each and in Hyderabad realty sales were 9 percent up. On the contrary, Kolkata and Pune witnessed a 10 percent and 1 percent year-on-year decline in 2018.
Further, the number of launches of housing units during the year increased by 75 percent from 2017 to around 1.82 lakh units.
“The growth in new launches was even more pronounced in H2 (July-December) 2018 as it saw supply levels spike by 119 percent. H2 2018 saw a total of around 89,500 new unit launches which was 119 percent up compared to H2 2017,” it said.
The realty consultancy firm in its report also noted that 60 percent of all launches were within the price bracket of Rs 50 lakh, showing that “most developers are concentrating on the affordable and mid-range segment in line with changing preferences”.
Mumbai (38,390 units), Pune (18,580 units) Bengaluru (11,830 units) saw the highest new unit launches in 2018.
The report also stated that 2018 was historically the “best performing year” for the commercial office market, with 46.8 million square feet leased.Back to latest news