The Mumbai Metropolitan Region (MMR) has fared well in terms of reducing the high inventory levels of its residential units over the past one year, with the level now at a six-year low. At the end of June 2021, MMR’s unsold housing inventory overhang reduced to 43 months from the peak of 55 months in 2020 amid Covid-19.
According to ANAROCK Property Consultants this drop in the inventory overhang is the biggest among all top seven cities. Currently, MMR’s unsold inventory overhang is close to being back to the level last seen in 2015, when it was 42 months. In contrast to the other top cities, MMR saw the maximum yearly decline of 6% in its overall unsold stock – from approximately 2.10 lakh units as of June 30, 2020, to about 1.97 lakh units as on June 30, 2021. The areas considered under MMR include Mumbai, Navi Mumbai and Thane.
The better news is that the bulk of this decline has come as a result of increase in sales of houses, rather than just fewer new launches. The region saw total sales of about 58,170 units between April-June of last year and April-June 2021, while new launches stood at close to 41,500 units.
Anuj Puri, chairman, ANAROCK Property Consultants, said the pandemic has been a game changer for the region, which was termed unaffordable till few years ago. “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
According to ANAROCK’s study, property prices in Mumbai had increased by as much as seven-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. 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. The report, however, did not elaborate how much has the affordability improved in the region now.