Malabar Hill micro-market picks up with 14 projects

Source: Hindustan Times

The report threw light on 14 different projects at different stages of construction by 12 developers that lie in this catchment. In the last 12 months, the micro-market has seen sales of 52 units, marking a 10% year-on-year increase

Mumbai: The Malabar Hill micro-market -- encapsulating Malabar Hill, Cumbala Hill and Walkeshwar -- has seen a 10% appreciation in premium housing, with an average weighted carpet area price touching ₹1.01 lakh per sq ft in the Q3 of 2023-24. This was revealed in a study by Liases Foras, an independent non-broking real estate research company. This has occurred as the premium housing market of Malabar Hill itself showed a staggering 79% increase in sales in 2023.

The report threw light on 14 different projects at different stages of construction by 12 developers that lie in this catchment. In the last 12 months, the micro-market has seen sales of 52 units, marking a 10% year-on-year increase.

One of the prominent projects is Lodha Malabar, on Walkeshwar Road, which will be completed on 2027. This project sold 10 units worth ₹1202 crore in the Jan-Mar quarter of 2023.

Malabar Hill is expected to benefit from the infrastructure development in south Mumbai. The Cuffe Parade to Seepz underground Aqua Metro Line and the Coastal Road project are expected to improve connectivity to the area where the city’s high net worth individuals reside.

The study pointed out that the Girgaon metro station is at a distance of 2.1 km from Malabar Hill, via Walkeshwar Road. It will take a seven-minute commute between the two points. It will take 11 minutes to commute from Malabar Hill to Grant Road by metro. Similarly, the Coastal Road will connect Kandivali in north Mumbai to Marine Drive in the south, increasing footfall from the western suburbs.

The study showed that the sales in this micro market stood at 17 units in Q3 of 2019 which increased to 29 in Q3 2022 in the post-Covid recovery and jumped to 52 in Q3 of 2023. The unsold inventory which stood at 248 units in 2019 came down to 146 units in Q3 of 2023. The new housing supply infused into the market increased from 14 units in 2019, 95 in 2020, 31 units in 2022 to 64 in 2023.

The market dynamics also saw the average weighted carpet area price gradually decline from ₹95,240 per sq ft to ₹92,718 per sq ft in 2022 but the momentum in sales and supply has for the first time in five years propelled the average price to cross ₹1 lakh per sq ft, the report said.

The analysis of the carpet area and ticket sizes indicated that 4BHKs were the preferred configuration with 67% sales in this segment. Homes with carpet area size between 2400 to 2700 sq ft in the price bracket of ₹30-35 crore were preferred.

The base price analysis showed that 13 of the 52 units were sold in the ₹30-35 crore price bracket followed by 10 sold in the ₹45-50 crore and six in the ₹95-100 crore. 35 of these units were 4BHKs and maximum marketable supply of 150 units came in this segment. Seven homes sold in last 12 months were in 5HK, four were duplex, one 6BHK duplex, one 5BHK penthouse and two triplexes.

Pankaj Kapoor, managing director, Liases Foras, put the present momentum towards large-sized homes, to the on people’s need to upgrade post-Covid. “Prices were not appreciating in this market between 2016 and 2021 because the high net worth individuals were not locking their money in real estate assets. We are now out of this price correction regime. The growth in HNI wealth has also seen them investing in everything from luxury homes to luxury products and booking profits,” said Kapoor.

He added that the improvement in transparency post-RERA has also contributed to the confidence among investors. “There is lesser chance of a developer defaulting with stringent monitoring by MahaRERA. Individuals who can afford a rate of ₹1 lakh per sq ft have aspirations for bigger spaces,” he said.