Unsold Residential inventory lower by 14% YoY: Report

MUMBAI

In the backdrop of H1 2017 – a period of RERA and GST implementation, Mumbai residential market witnessed 128% YoY growth in launches in H1 2018. This was primarily driven by dumping ground reprieve in Mumbai city and also mega project launches in peripheral suburbs, Dr Samantak Das, Chief Economist & National Director – Research said in a conference.

During the launch of Knight Frank India’s half-yearly report on Wednesday Das said, Most developers focused on reducing apartment sizes of their new launches. Accordingly, we have seen a shrinkage of 12% in apartment sizes across MMR, with some premium markets witnessing the reduction of as high as 31%. Further, besides the nominal price drop across markets, developers are also offering a host of other incentives to entice buyers.

Office Key Highlights:

– New office space supply lowers by 42% YoY

– Vacancy levels see a marginal rise to 21.5%

-Lack of quality office space in desired business districts limits transactions, transaction lower by 7%  YoY

– The greater share of transactions in lower rental peripheral and suburban office markets pull down-weighted average transacted rentals by 8% YoY

– Co-working comprises 30% of transactions by ‘Other Services’ sector

The office market has been steady with rentals growing across business districts; however, the growth in transactions was restrained by lack of supply. While the headline vacancy rate for the MMR market hovers around 22%, scarcity of quality office space in desired markets like BKC and Lower Parel has restrained expansion plans of occupiers, he added.

Residential Key Highlights:

-Launches grow 128% YoY in H1 2018 on a low base of H1 2017 due to dumping ground reprieve in BMC region and mega project launches in peripheral suburbs

-Mumbai city (BMC region) witnesses the highest growth in supply post dumping ground reprieve

-The average size of units in MMR shrink by 12% between 2013 and 2018

-9% YoY decline in weighted average prices across MMR, with prices declining across markets

-In addition to the reduction in prices, developers are offering a bouquet of sops including 24-month rent assurance, stamp duty waivers and no floor rise charges among others-

-Residential sales stagnant recording a marginal 1% YoY growth over H1 2017

-Unsold inventory lower by 14% YoY. QTS declines from 8.8 in H1 2017 to 8.0 in H1 2018 as launches have constantly lagged sales from H2 2014 till H2 2017.





Similar Articles

Leave a Reply

Top