Mumbai Metropolitan Region Has Highest Average Sq.Ft Price of Houses And Unsold Inventory

The average sq.ft price of a house in the Mumbai Metropolitan Region (MMR) is Rs 19,557, the highest in the country. But that’s not all. MMR also accounts for the highest share of unsold inventory at 32 per cent, according to a joint report by CREDAI, Colliers and Liases Foras.

The report comes at a time when MMR is experiencing a decrease in price on a quarter-on-quarter (q-o-q) basis of 1 per cent, while on a yearly basis, it is up by 1 per cent.

This is quite the opposite trend when all the cities, with the exception of MMR and Chennai are experiencing a price increase of 11 per cent q-o-q. 

On a pan-India basis,

Key Trends Across Different Cities In North India

Delhi-NCR: The average housing price per square feet in Delhi-NCR was Rs 7,363. Housing prices increased by 15.5 y-o-y when compared with Q1 2021 prices. The report also noted that housing prices increased by a sharp 43 per cent since the pandemic started in 2020. 

That being said, the gross inventory dropped 5 per cent on a y-o-y basis in Q1 2022, implying that people in the Delhi-NCR region are buying houses despite prices rising. 

Interestingly, Delhi-NCR’s Golf Course Road (Sector 28 Gurgaon, DLF City Ph III, and Sector 53 Gurgaon) witnessed the most remarkable change at 53 per cent in price delta difference between under-construction units and ready-to-move in units.

The Noida region is accountable for about 23 per cent of the total unsold inventory in the Delhi-NCR region, with most of them in the Rs 2,000-5,000 per square feet price range.

Mumbai Metropolitan Region (MMR): The average housing price per square feet in MMR was Rs 19,557. Housing prices remained largely stable amid newer launches, with just a 1 per cent increase on a y-o-y basis.

However, the New Mumbai and western suburbs (beyond Dahisar) regions experienced an increase of 9-10 per cent in prices on a yearly basis.

On a pan-India scale though, MMR accounted for 32 per cent of the total unsold inventory. The price range at which most inventory remained unsold was Rs 5,000-7,000 per square feet.

“Although the region saw significant new launches, overall unsold inventory remained stable on a y-o-y basis, signifying robust demand in the market,” the report said.

Ahmedabad: The average housing price per square foot in MMR was Rs 5,721, up by 8.3 per cent on a yearly basis. According to the report, Zone 1 of Ahmedabad city recorded the highest increase on a yearly basis at 11 per cent.

The price for a 1 BHK residential house increased by 7 per cent on a y-o-y basis. However, Zone 4 of Ahmedabad witnessed the maximum number of unsold inventory at 24 per cent.  

The Ahmedabad Municipal Corporation (AMC) has allocated 1.4 lakh square metres of area for social infrastructure projects in the Bhadaj and Vejalpur areas, which fall in Zone 2 and 5, respectively.

Unsold House Inventory Trends

The report said that the total number of unsold real estate inventory on a pan-India basis dropped, as demand in the market improved. Among the most important factors for improvement in demand were low loan rates and fairly stable housing prices across regions.

But the onset of the third wave of Covid-19 in Q1 2022 led to a sharp rise in gross unsold inventory in certain regions of India. Overall, on a q-o-q basis, India’s unsold inventory rose by 1 per cent, the report concluded.