Property Sales and Lease Trends in MMR and Pune (January - March 2022)

Analytics Apr 22, 2022

The property sales market in the MMR-Pune region has witnessed an uptick in transaction volume in the January - March quarter (Q1) of 2022, maintaining momentum from the last quarter. Favorable demographics, improved affordability of residential properties and historically low mortgage rates continue to push demand. Among the different geographies examined, Pune noted the greatest growth QoQ.

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Property Sales in MMR and Pune

The MMR region - which consists of Mumbai, Mumbai Suburban, Thane, Raigad and Palghar  - recorded a quarterly increase of 20.3%. Pune, however, witnessed a more substantial increase of 25.6%. Affordable Home Loans (ticket size < Rs. 45 Lakhs) remained an important component of property sales, contributing 59.9% by volume in Q1 2022 in the MMR-Pune region. Tier - 1 cities such as Mumbai and Pune were seen to have a lower share of sales in the Affordable segment as compared to the other districts.

Overall property sales volume in the MMR-Pune region recorded an average YoY decline of 19.5% in Q1 2022 compared to Q1 2021. The steepest decline was seen in Mumbai, with sales in Q1 2022 26.10% lower than those in Q1 2021. The reason for change in sales volume can be attributed to the surge seen in Q1 2021 as a result of pent - up demand from the first wave of COVID-19, along with the reduction in stamp duty from 5% to 2% by the Maharashtra government in Q4 2020, and a further 3% in Q1 2021.

Premium Segment Continued to Drive Sales Volume in Mumbai

Mumbai, where property prices are generally on the higher end, witnessed maximum sales volume in the Premium segment. While the segment was still the strongest of all, there was a slight decline observed with the market share of Premium properties falling to 62.7% compared with 64.2% in the previous quarter. In contrast, the market share of Affordable property sales increased by 1%.

Malad Recorded the Highest Sales Volume in Mumbai

Malad saw the most number of property sales transactions in Q4 2021 with 229, 334 and 580 transactions in the Affordable, Mid-segment and Premium segment respectively, whereas Ghatkopar saw the highest share of sales in the Premium segment, with 62.77% of its total sales towering the 75 lakh mark.

Other localities that drove sales volume in Mumbai were Kanjur and Kandivali.

Wagholi Recorded the Highest Sales Volume in Pune

Wagholi saw the most number of property sales transactions in Q4 2021 with 1317, 673 and 535 transactions in the Affordable, Mid-segment and Premium segment respectively, whereas Chikhali saw the highest share of sales in the Affordable segment - the biggest segment in terms of volume for Pune - with 92.5% of its total sales falling under the sub - 45 lakh segment. Other localities that drove sales volume in Pune were Mahalunge and Vakad.

Property Lease Activity in MMR and Pune

The rental market in the MMR-Pune region has witnessed a quarterly decline in all regions except for in Pune. The yearly trends offer a more optimistic view, exceptions being Mumbai and Thane, the districts which observed a marginal decline.

The upcoming commencement of the new financial year might do well to bolster these numbers in the near future, with more and more offices and educational institutions opening up their doors for in-person attendance.

Locality Wise Lease Activity in Mumbai

Malad saw the most rental activity in Mumbai in Q1 2022 with 5064 transactions, and 4131 transactions in Q4 2021.

Other localities that made up for the bulk of leasing activity in Mumbai were Kandivali and Borivali, with a continued strong showing this quarter, carrying on from the last.

Locality Wise Lease Activity in Pune

Hinjwadi saw the most rental activity with 816 transactions in Q1 2022, and 755 transactions in Q4 2021.

Other localities that were the most popular choice for rentals in Pune included Hadaspar and Man.

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