The year saw sales volume recording marginal growth of 3% at 63,893 units, while total launches rose 74,363 units denoting 220% rise.
The significant increase in new launches is attributed to release of supply, which was previously held back due to series of regulatory aspects. The temporary reprieve from the construction ban due to dumping ground issue in Mumbai effective from March 2018 was a significant catalyst for growth.
“Mumbai has seen a significant drop of 7% in average prices in 2018, which coupled with reduced sizes of new launches, has brought down the average ticket size in the city. Consequently, homebuyers are getting a better value for their purchase than a few years ago,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
Demonetisation hangover coupled with structural changes like GST and RERA had led to a decadal low in new launches in Mumbai Metropolitan Region in 2017. As dust settled on most of these issues, supply volumes were released through 2018.
Policy incentives like Prime Minister Awas Yojna (PMAY) and Credit Linked Subsidy Scheme (CLSS) have helped steer demand towards affordable housing segment. The supply side has accordingly calibrated itself in this period.
A significant shift of strategy was seen within new launches. Compact homes are becoming pervasive as developers chose to reduce the average size of the apartments in order to make the overall ticket size affordable. MMR region saw a decline of approximately 25% in sizes of new launches in 2018 as compared to five years ago.