The MMR housing market showed stable performance during CY 2022. Housing demand remained healthy across major residential markets. Buyers continued to prefer projects with better connectivity and access to infrastructure. Developers also launched several new projects during the year. The market ended CY 2022 on a positive note despite a small annual sales decline.
According to the CRE Matrix & CREDAI MCHI Presents MMR Housing Year End Analysis 2022 report. Housing sales across MMR declined by 2% in CY’22 compared to CY’21. However, Q4 CY’22 sales increased by 21% year-on-year. New housing launches also increased by 35% during the year. Housing prices across MMR rose by 4% despite higher inventory levels.
Infrastructure Projects Supported MMR Housing Demand
Infrastructure development continued to support the MMR housing market in CY 2022. Metro expansion projects improved connectivity across several residential corridors. The Coastal Road project also increased interest in many suburban locations. Better transport access encouraged more homebuyers to explore emerging residential markets. These projects also reduced travel time for daily commuters.
The report stated that infrastructure growth improved buyer confidence across MMR. Stable employment opportunities also supported housing demand during the year. Many buyers preferred locations with upcoming infrastructure upgrades. As a result, suburban and peripheral markets witnessed stronger activity. Several developers increased project launches in these growing locations.
Vasai-Virar Recorded Strong Housing Sales Growth
Vasai-Virar emerged as one of the strongest housing markets in CY 2022. Housing sales in the region increased by 24% compared to CY’21. New launches also increased sharply during the year. Developers launched several affordable and mid-income housing projects in the market. Housing prices in Vasai-Virar also increased by 11% year-on-year.
Greater Thane and Central Suburbs also reported healthy housing demand. Greater Thane recorded a 23% rise in annual housing sales. Central Suburbs witnessed an 18% increase in sales during CY’22. These markets continued to attract buyers due to improving connectivity and competitive pricing. Demand remained strong across both affordable and mid-segment housing projects.
Thane City Led New Housing Launches
Thane City became one of the biggest launch-driven housing markets in CY 2022. New launches in the market increased by 251% compared to CY’21. Developers introduced several large residential projects during the year. Strong infrastructure growth supported new project activity across the city. Housing prices in Thane City also increased by 7% year-on-year.
Mira Bhayandar also recorded strong launch activity during CY’22. New launches in the market increased by 59% year-on-year. Housing prices in the region rose by 8% despite lower annual sales. Buyers continued to show interest in affordable residential projects across the corridor. Improved infrastructure also supported housing demand in the market.
Unsold Inventory Increased Across MMR
Unsold housing inventory increased across several MMR markets during CY 2022. Overall unsold inventory across MMR increased by 12% year-on-year. Higher launches during the year added fresh supply to the market. However, housing demand remained stable in several key regions. Developers continued to maintain pricing discipline despite rising inventory levels.
Western Suburbs, Central Mumbai, and Vasai-Virar recorded higher unsold inventory growth. Western Suburbs witnessed a 20% rise in unsold stock during the year. Central Mumbai reported a 21% increase in inventory levels. Vasai-Virar also recorded strong inventory growth due to higher launches. Still, these markets continued to attract healthy buyer interest.
Housing Prices Continued to Rise in CY 2022
Housing prices across MMR continued to increase during CY 2022. Several residential markets recorded healthy annual price growth. Vasai-Virar, Eastern Suburbs, and Thane City led the price appreciation trend. Mira Bhayandar also witnessed steady housing price growth during the year. Rising construction costs also supported price increases across projects.
At the overall MMR level, weighted average housing prices increased during the year. Prices rose from ₹16,354 per sq ft in Q4 CY’21 to ₹16,940 per sq ft in Q4 CY’22. However, some markets recorded price corrections during the same period. South Mumbai and Navi Mumbai witnessed lower housing prices in CY’22. Central Suburbs also reported a decline in annual housing prices.
MMR Housing Market Outlook Remains Positive
The MMR housing market ended CY 2022 with improving market confidence. Strong Q4 sales reflected better buyer sentiment across key residential markets. Infrastructure development continued to support long-term housing demand. Developers also increased project launches across emerging suburban corridors. The market entered 2023 with stable pricing and stronger residential activity.
Several residential markets are expected to maintain healthy demand levels going forward. Buyers will continue to prefer projects with better access to infrastructure. Affordable and mid-income housing segments may witness stronger activity in 2023. Developers are also likely to focus on larger integrated housing developments. Overall, the MMR housing market remains positive for long-term residential growth.
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