Representative Image (Source: Reuters)
Smaller-sized units of 1 or 1.5 BHK have remained the preferred choice of homebuyers in MMR over the last five years and as many as 60 percent of units were registered in this segment, at an average ticket size of Rs 34 lakh, a report by CREDAI MCHI, in association with its Knowledge Partner CRE Matrix has said.
With Mumbai one of the costliest property markets in India with larger ticket sizes than anywhere else in the country, smaller houses (<2/2.5 BHK) in MMR remain consistently in demand – a trend that has continued for years. In January-February too, houses worth Rs 20,736 crores were registered under the category, amounting to approximately 60 percent of the total value of properties sold in the same timeframe, it said.
The research titled MMR Housing Typology Report traces the most pertinent homebuying trends of MMR residential real estate transactions since January 2017 till date.
The research report analyses MMR market by dividing it into eight key housing markets: CBD Mumbai, Central Mumbai, Central Suburbs, Western Suburbs, Eastern Suburbs, Thane, Raigad and Palghar.
Central Business District (CBD) has witnessed a YoY growth (2020 as compared to 2019) in sales in terms of both number and value of units sold, despite 2020 being a truncated year due to COVID-19. In January–February, the less-than-4BHK category had the highest impact and share in terms of value of properties sold, with an average ticket size of Rs 13 crore.
The Central Mumbai region has historically witnessed the majority of sales (in value terms) coming from larger typologies. In January–February, too, the less-than or equal-to-4BHK category had the highest share in the value of units sold. In fact, the Rs 1,863 crore spent on 184 units in Central Mumbai is the highest amount observed across all of MMR, it said.
Central Suburbs was typology agnostic as all format types have contributed at least 15 percent in value terms in 2020. The highest contributor in terms of value of properties sold, though, was the 3/3.5 BHK category, at an average ticket size of Rs 3.6 crores.
In case of Eastern Suburbs, on the other hand, 2-3 BHK category had the highest impact (around 60 percent) on value of properties sold, with an average ticket size of Rs 1.7 crore. Across Western Suburbs, the less than or equal to 2.5 BHK is the most popular category, contributing to over 84 percent of unit sales in 2020, a trend also witnessed in January-February.
Historically, while majority of sales in Thane have come from the 1/1.5 BHK segment, with an average ticket size of Rs 30 lakh, the 2/2.5 BHK category has emerged as the highest impact typology - contributing an average of 22 percent to units sold but 27 percent to total value sold.
Moreover, the average unit price of 2/2.5 BHK typology in Thane has increased by 6 percent on a three-year CAGR basis to Rs. 54 lakh in 2020. Led by an increase in real estate development and enhancing infrastructure, the report foresees a change in Thane’s buyer preferences in the future.
In Raigad, the affordable segment market has witnessed almost 66 percent units being sold in studio, 1 or 1.5BHK segment with an average ticket size of Rs 27 lacs.
Palghar has witnessed majority of sales happening in smaller typologies of 1/2 BHK segments, contributing 94 percent in number of units sold and 84 percent in total value sold in 2020. Going-forward, with the Mumbai-Ahmedabad bullet train route passing through this region, it is likely to see an improvement in overall development and an increase in demand for larger typologies as well.
“This report gives consumers an insight on housing typologies and trends and also provides the developer fraternity a definitive course of strategic direction for future projects. With a new dawn of MMR real estate upon us, we look forward to partnering with industry stakeholders by facilitating an informed and knowledgeable real estate environment and making a decisive difference to enable Real Estate to lead the next chapter of growth for Mumbai and Maharashtra’s economy,” said Deepak Goradia, President - CREDAI MCHI.