In 2022, Mumbai’s real estate market achieved an unprecedented level of sales, marked by the highest-ever number of registered properties. Liases Foras, an independent real estate research company, provided data on the housing market trends for the year, revealing that the Mumbai Metropolitan Region (MMR) witnessed the highest supply of new houses, surpassing Pune, Hyderabad, and Ahmedabad.
In September 2021, MMR had a new house supply of 9,022 units. By September of the following year, this figure surged to 22,044, representing a remarkable 144% increase. Despite the substantial growth in supply, the average price increase in MMR remained modest at just 1%.
Nationally, the launch of new residential projects experienced a significant upswing, being 41% higher than the previous year and 22% more than in 2019. Pankaj Kapoor, Managing Director of Liases Foras, emphasized that 2022 marked the highest-ever sales, surpassing the 4-lakh figure across India. The year also witnessed a substantial number of launches, totaling around 4.2 lakh new units. However, this surge in supply contributed to an increase in unsold inventories.
Before the onset of the Covid-19 pandemic, the average time for all unsold units to be sold was 53 months. Presently, this figure has decreased to 38-39 months, with the total inventory only reducing by 7%. While the highest number of unsold inventories was recorded in 2018 at around 13.5 lakh, the current count is 12.5 lakh units in various stages of construction. Kapoor noted that selling these units would require at least three years.
Looking ahead to 2023, Liases Foras’ real estate market outlook predicts a moderate rise in prices. The report suggests that 2023 will be a buyer’s market, with a high number of houses available for sale and builders facing a low margin of profit. Despite this, the report anticipates that sales will remain robust in the coming year.