MMR Unsold Housing Stock Falls 8% Y-o-Y Despite New Launches
• MMR’s y-o-y decline in unsold housing highest among major 7 cities in Q1 2021, – from 2,13,180 units as on Q1 2020-end to approx.1,97,040 units by Q1 2021-end
• Despite ample new supply, MMR’s unsold stock decline amidst robust sales - approx. 14,820 units (highest of top 7 cities in Q1 2021
• Of approx. 20,350 units sold in MMR in Q1 2021, 68% in Mumbai, 18% in Navi Mumbai & 14% in Thane
• Developers demand extension of stamp duty cut to sustain ongoing sales momentum
Even as the region’s COVID-19 case count continued piling up, MMR emerged as one of the most buoyant residential markets in Q1 2021. It saw the highest yearly decline (8%) in total unsold housing stock by the ed of this quarter – from 2,13,180 units as of Q1 2020-end to 1,97,040 units as of Q1 2021-end. It was the highest y-o-y decline of unsold housing inventory in the last 7 years. In previous years, MMR’s stock either increased y-o-y or declined by no more than 3%.
Notably, the overall stock fell despite ample new supply hitting the market during this and the preceding quarter. MMR saw 14,820 new units added in Q1 2021 – the highest among the top 7 cities - yet robust sales in Q1 2021 and Q4 2020 significantly dented the overall unsold stock in the region. Housing sales are driven by bottomed-out property prices, limited-period stamp duty cuts, developer discounts, and the lowest-best home loan rates.
Approx. 20,350 units were sold in MMR in Q1 2021, of which 68% (approx. 13,750 units) were sold in Mumbai, 18% (approx. 3,650 units) in Navi Mumbai, and 14% (approx. 2,950 units) in Thane.
“Mumbai is one of the most expensive real estate markets in the world,” says Anuj Puri, Chairman – ANAROCK Property Consultants. “A reduction in overall acquisition cost by anything between 5-15% made a huge difference in buyer sentiments. Low home loan interest rates and developer discounts, and timely intervention of the government byways of stamp duty reductions and a 50% cut in premium charges also helped the region get its mojo back even during COVID-19.”