The Malabar Hill micro-market in Mumbai has experienced a 10% appreciation in premium housing, reaching an average weighted carpet area price of Rs.1.01 lakh per sq ft in Q3 2023-24, according to a study by Liases Foras. This growth is attributed to ongoing infrastructure developments in South Mumbai, including the Cuffe Parade to Seepz underground Aqua Metro Line and the Coastal Road project. Sales increased from 17 units in Q3 2019 to 52 in Q3 2023, with decreased unsold inventory and a rise in new housing supply, marking a positive shift in market dynamics. The average price per sq ft surpassed Rs.1 lakh for the first time in five years.
The Malabar Hill micro-market in Mumbai, encompassing Malabar Hill, Cumbala Hill, and Walkeshwar, has witnessed a 10% appreciation in premium housing. The average weighted carpet area price reached Rs.1.01 lakh per sq ft in the third quarter of 2023-24, according to a study by Liases Foras. The premium housing market in Malabar Hill itself experienced a remarkable 79% increase in sales in 2023. The study highlighted 14 projects by 12 developers in the catchment, revealing a 10% year-on-year increase with 52 units sold in the last 12 months.
One prominent project, Lodha Malabar on Walkeshwar Road, sold 10 units worth Rs.1202 crore in the first quarter of 2023, contributing to the micro-market's positive growth. Malabar Hill is expected to benefit from ongoing infrastructure development in south Mumbai, including the Cuffe Parade to Seepz underground Aqua Metro Line and the Coastal Road project. The Girgaon metro station, located 2.1 km from Malabar Hill, and the Coastal Road project are anticipated to improve accessibility and contribute to the area's real estate growth.
The study revealed that sales in the Malabar Hill micro-market increased from 17 units in the third quarter of 2019 to 29 in the third quarter of 2022, post-Covid recovery, and surged to 52 in the third quarter of 2023. Unsold inventory decreased from 248 units in 2019 to 146 units in the third quarter of 2023. New housing supply into the market rose from 14 units in 2019 to 64 units in 2023, marking a positive shift in market dynamics. The average weighted carpet area price, which declined from Rs.95,240 per sq ft to Rs.92,718 per sq ft in 2022, has now surpassed Rs.1 lakh per sq ft for the first time in five years.
Analysis of carpet area and ticket sizes indicated a preference for 4BHK configurations, constituting 67% of sales, with carpet area sizes between 2400 to 2700 sq ft in the Rs.30-35 crore price bracket. The base price analysis revealed 13 units sold in the Rs.30-35 crore price range, followed by 10 units in the Rs.45-50 crore and six units in the Rs.95-100 crore range. The marketable supply in the 4BHK segment reached 150 units, with seven homes sold in the last 12 months falling under the 5HK category, four duplexes, one 6BHK duplex, one 5BHK penthouse, and two triplexes.
Pankaj Kapoor, Managing Director of Liases Foras, attributed the present momentum towards larger homes to the post-Covid need for upgrades, with high-net-worth individuals investing in real estate assets. Kapoor highlighted the period between 2016 and 2021 when prices in the market were not appreciating due to HNIs avoiding locking their money in real estate. He noted that improved transparency post-RERA has boosted investor confidence, with stringent monitoring reducing the likelihood of developer defaults. Kapoor emphasized that individuals able to afford Rs.1 lakh per sq ft aspire to larger spaces, contributing to the current growth in the Malabar Hill micro-market.
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