Mumbai real estate: 27% less units launched in CY23 compared to CY22, 1 BHK ratio goes up

Out of the total units launched in CY23, 32 percent are 1 BHK apartments, 34 percent are 1.5 and 2 BHK apartments, 15 percent are 2.5 and 3 BHK apartments followed by other bigger sizes of residential and non-residential launches.

The Mumbai real estate market has gone down by 27 percent in Calendar Year 2023 compared to CY 22. It fell  by 18 percent in the second half of CY23 compared to the first half of CY 23.

Further, the unit launch ratio of 1 BHK apartments has gone up to 34 percent in the second half of 2023 from 30 percent in the first half of 2023 and from 31 percent in CY22 to 32 percent in CY23, according to the registration data of real estate regulator Maharashtra Real Estate Regulatory Authority (MahaRERA).

At the same time, the number of units launched in the 3.5 and 4 BHK category has been the highest at 1,509 in CY23 compared to the last three years in 2022 (1,402), 2021 (979), and 2020 (504).

However, experts opine that launches in 2023 went down as launches in 2022 were exceptionally high due to the 50 percent premium cuts being offered to developers by the Maharashtra government.

Further, despite overall launches going down in CY23, several areas like Bandra East, Jogeshwari East, Andheri East and Girgaon saw a higher number of launches in CY23 where experts say there will be a lot of price pressure on developers as homebuyers will have a lot of options, as per MahaRERA data.

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Mehul R Thakkar

Special Correspondent|Moneycontrol

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2023 vs 2022

In CY 23, the Mumbai real estate market reported launch of 52,771 units which is 27 percent lower than 72,389 units in CY22, 55,157 in CY21, and the lowest at 25,404 in CY20 owing to the onset of the Covid-19 pandemic. Further, in the second half of CY23, the launches went down to 23,645 from 29,126 in the first half of CY23, according to MahaRERA data.

Also read: Luxury property sales rise in Mumbai, Rs 3-7 crore sweet spot for homebuyers

"In 2019-2020, the supply was around 30,000 units being launched per year. In 2021-22-23, the supply has increased to 50,000 units per year with supply peaking at over 70,000 units in 2022, in response to the 50 percent discount in premiums,” said Pune-based Rahul Ajmera, Developer at Vasupujya Corporation and a data analyst.

"Although the new launches have grown by over 60 percent in the post Covid-19 era, sales have not increased in the same proportion, which will put pressure on prices and new launches in 2024. But at the same time, there has been significant growth in launches of larger and luxurious units, specially above 150 sq mtrs (1,600 sq ft) carpet area and above 3 and 4 BHK units in the last few years," Ajmera added.

In CY23, Around 90 percent of the new launches were in North and Central Mumbai, specifically above Dadar and Sion, according to the MahaRERA data. The areas with the highest number of new launches, surpassing 1,000 units, include Kandivali West, Chembur, Bhandup West and Mulund West.

"We have projects in Kandivali, Malad, Andheri and Chembur where launches have significantly increased in the post Covid-19 era. Now, if we talk about more launches, this means obviously more options for homebuyers. Hence, the one with best amenities and value addition wins. The value addition is in the form of bigger balconies or having balconies in areas where other developers are not offering it at all." said Nikunj Sanghavi, MD at Mumbai based Veena Developers.

Sanghavi added, “Further, something like optimisation of space, which is minimal wastage in the floor plate of apartments in several areas like walking lobby, passageway, at the same time also ensuring that we do not make those areas very small. Other than that, several other factors like amenities and pricing also play a crucial role in closing deals, as homebuyers have more options to explore owing to increased launches over the past two years."

Also read: Rs 1 crore budget? Should you buy a 3 BHK in Panvel or 1 BHK in Mumbai?

2023 launch size

“A majority of the newly launched housing inventory has a carpet area of less than 60 sq mtrs (640 sq ft). This percentage has remained consistent over the past five years, indicating that despite the prevalence of work-from-home/hybrid work culture, home sizes have not changed significantly. This contrasts with other cities where average home sizes have seen significant increases in recent years," reads the analysis of MahaRERA data done by Ajmera.

"About a third of the new housing inventory consists of 1 BHK configurations, suggesting that affordability is a major concern among homebuyers. However, there has been a growing preference for larger apartment configurations with 3 bedrooms and above,” the analysis further reads.

Out of the total units launched in CY23, 32 percent are 1 BHK apartments,  34 percent are 1.5 and 2 BHK apartments, 15 percent are 2.5 and 3 BHK apartments followed by other bigger sizes of residential and non-residential launches.

Meanwhile, several areas like Antop Hill, Juhu, Goregaon West and areas around Mumbai Airport, saw below 200 units being launched in CY23, according to the data.