The Mumbai real estate market witnessed a notable shift in trends in Calendar Year 2023 (CY23), marked by a 27% decrease in unit launches compared to CY22. This decline continued in the second half of CY23, with an 18% drop compared to the first half. The registration data from the Maharashtra Real Estate Regulatory Authority (MahaRERA) provides insights into the changing dynamics of the real estate landscape.
One significant trend is the increased prominence of 1 BHK apartments, constituting 34% of the unit launch ratio in the second half of 2023, up from 30% in the first half. The shift is also evident in the annual comparison, with the 1 BHK ratio going from 31% in CY22 to 32% in CY23. This reflects a growing preference for more compact living spaces.
Despite the overall decrease in launches, certain areas like Bandra East, Jogeshwari East, Andheri East, and Girgaon experienced a surge in launches during CY23. Experts predict potential price pressure on developers in these areas due to increased options for homebuyers, according to MahaRERA data.
In CY23, the total unit launches amounted to 52,771, a 27% drop from the 72,389 units launched in CY22. The decline is attributed to the exceptionally high launches in 2022, driven by the 50% premium cuts offered to developers by the Maharashtra government. The MahaRERA data also indicates that larger units, specifically 3.5 and 4 BHK, saw the highest launches at 1,509 units in CY23, compared to previous years.
The supply-demand dynamics pose challenges for developers, as the surge in launches hasn’t been proportionately matched by increased sales. Pune-based Rahul Ajmera, a developer and data analyst, notes that this could lead to price pressure and affect new launches in 2024.
Despite the decline in overall launches, specific areas, including Kandivali West, Chembur, Bhandup West, and Mulund West, experienced launches surpassing 1,000 units. Developers emphasize the importance of offering value additions and optimal space utilization to stand out in Mumbai Real Estate with increased options.