A bavdi or well is the main source of irrigation on railway farms in Kurla. Farm labourers working here state that there is enough water in the wells all year to grow vegetables. (Image: Mongabay/Geetanjali Gurlhosur)
At the end of the April to June quarter of 2021, the Mumbai Metropolitan Region (MMR) had an unsold housing inventory overhang of 43 months, down significantly from the peak of 55 months in 2020 amid COVID-19, according to an analysis by Anarock.
In contrast to other cities, MMR saw the maximum (of 6%) yearly decline in overall unsold stock – from approximately 2.10 lakh units as of Q2 2020 to approximately 1.97 lakh units as of Q2 2021
Stamp duty cuts, lowest-best home loan interest rates, developer discounts and offers helped MMR sell around 58,170 units in the COVID-19 pandemic period (Q2 2020 to Q2 2021).
The areas considered under MMR include Mumbai, Navi Mumbai and Thane.
This drop of 12 months' inventory overhang is the biggest among all top 7 cities. Currently, MMR’s unsold inventory overhang is close to being back to the level last seen in 2015, when it was 42 months.
MMR housing sales exceeded new launches in the last one year. The region saw total housing sales of approximately 58,170 units in the pandemic period between Q2 2020 to Q2 2021, while new launches stood at approx. 41,500 units.
“Until just a few years ago, the property market in many areas of MMR was more or less defined by unaffordability," says Anuj Puri, Chairman - ANAROCK Property Consultants.
"In that respect, the pandemic was a game-changer for the region. Stamp duty cuts, extremely low home loan interest rates, and developer discounts and offers boosted MMR's housing market in one of the most challenging and difficult years in remembered history," he said.
A reduction in the overall cost of acquisition bottomed out in one of the most expensive regions in India is remarkable. Property prices in Mumbai had increased by as much as 7-10 times over the past 20 years. The average number of monthly incomes required to own a home in this city is the highest among major Indian cities at between 67-90 times of an average monthly income, the analysis said.
Until the pandemic unfolded, less than 5% of the people living in Mumbai could afford to buy a home here, either outright or with a home loan.