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Time of India
20 hours ago
- Business
- Time of India
Jogeshwari-Borivli belt saw city's highest flat sales last yr
Mumbai: Even as one-off luxury apartment transactions in south Mumbai, each worth a few hundred crores, shake Mumbai's property market, the real action is happening in another distant zone of the city. The Jogeshwari-Borivli belt is witnessing an unparalleled property boom with the maximum projects and highest flat sales in 2024-25. The belt had 879 projects executed by 588 builders and recorded flat sales worth over Rs 40,000 crore — the highest in Greater Mumbai (see box). The Colaba to Worli belt, parts of which are taken to be the priciest real estate in India, saw sales of around Rs 22,500 crore in that period, found a TOI study in collaboration with Liases Foras. South Mumbai (Colaba to Worli) had just 169 projects but with the steepest per square foot rate (carpet) rate of Rs 1.80 lakh, the highest in the city. TOI in association with Liases Foras, a real estate research and data analytics company, did a deep dive into Mumbai's micro-markets by analysing data based on an extensive ground survey covering 2,329 active projects being marketed by 1,342 developers. According to the Liases Foras survey, Mumbai's real estate market recorded its highest-ever sales in financial year 2024–25, with 49,191 units sold worth Rs 1,24,138 crore, marking a 26% growth over the previous fiscal year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pinga-Pinga e HBP? Tome isso 1x ao dia se tem mais de 40 anos Portal Saúde do Homem Clique aqui Undo However, the unsold stock of over 84,000 flats was worth Rs 2,57,383 crore. The greatest number of ultra-expensive apartments (over Rs 20 crore) were in the Colaba-Worli belt. According to the survey, there were 1,199 such flats in this belt while none in the Jogeshwari-Borivli belt. The median property price stood at Rs 27,500 per square foot, up 6% year-on-year. The base price per sq ft ranged from Rs 13,300 to Rs 1,80,000, highlighting the wide price spectrum across micro-markets. "Mumbai's unsold inventory declined to 84,197 units, valued at Rs 2,57,383 crore, representing an 11% drop from last year. Robust sales momentum has significantly reduced the inventory overhang to 20 months, a dramatic improvement from the peak of 60 months in FY 2016–17," said Pankaj Kapoor of Liases Foras. About 39% of unsold supply falls within the Rs 1crore -Rs 2 crore cost bracket of the units, and 30% is within the Rs 2crore-Rs 5 crore cost bracket. Approximately 10% of the unsold units fall within the cost bracket of more than Rs 5 crore with around 1,400 units costing over Rs 20 crore. On the supply side, 40,306 new units were launched in 2024-25, a modest 1% increase over the previous year. The western suburbs—especially the stretch from Jogeshwari to Borivli—recorded the highest activity. A total of 879 projects in this region contributed sales of 18,319 units, valuing Rs 40,083 in 2024-25, which was 39% higher than the previous year. The unsold units are 37,214, with a 22-month inventory overhang. The central suburb has 714 projects contributing sales of 18,082 units, an 18% increase from the previous year. With 24,746, the central suburb has the least inventory overhang, at just 16 months. So, what drove the surge in Mumbai's real estate sales? According to the House Price Index by Liases Foras, which tracks price appreciation in the projects across years, property prices in Mumbai have grown at a modest CAGR of just 4.96% over the 16 years following the global financial crisis. Starting from a base index of 100 in 2008–09, the index reached 217 in 2024–25 — a 117% total increase. Notably, 72% of this appreciation occurred between 2008-09 and 2012-13, driven by excessive financialisation and investor participation. However, the past 11 years have seen only a 45% cumulative rise, indicating a period of price stagnation and market correction. Affordability still matters even for India's costliest real estate market. The surge in sales can be attributed to muted price growth over the long term. It is the price efficiency that drew end-users, which contributed to an unprecedented rally that Mumbai real estate witnessed in recent times. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
Time of India
30-04-2025
- Business
- Time of India
Sales in India's top eight property markets up by 18% in FY25
The housing property markets across the top 8 Indian cities have stayed strong in the financial year 2024–25, with over 5 lakh units sold, an 18% on-year growth. New launches, however, dipped 8% to 4.3 lakh units, indicating a cautious stance from realty developers, showed data from Liases Foras Real Estate Rating & Research . Despite the slowdown in new supply, unsold inventory remained under control at around 8 lakh units, with a healthy inventory overhang of just 19 months. Property prices inched 3.7% higher, backed by steady demand and fewer launches. With current inventory levels staying efficient, there's little risk of a price correction and moderate price growth is more likely, Liases Foras said. Going forward, while Mumbai Metropolitan Region (MMR), Pune, and Hyderabad may experience some cooling, and markets like National Capital Region (NCR), Bengaluru, and Chennai are expected to continue growing. Supporting this resilience, Mumbai's property registration numbers have held steady, adding to the overall market confidence. With the current inventory overhang of 19 months, the situation remains well balanced, the report said. According to Liases Foras, the dip in new supply is not a cause for concern, as the existing unsold inventory is sufficient to meet current demand, supporting healthy and efficient market dynamics. However, it has also highlighted the markets have witnessed a plateau in sales led by reduced new launches in the last two quarters, after around four years of growth rally. Liases Foras expects moderation in the luxury and ultra-luxury segments going forward with early signs of growth in the affordable and mid-segment. With reduction in interest rates, it expects improved affordability, which will boost the affordable market across tier I and tier II cities.
Time of India
29-04-2025
- Business
- Time of India
India's top 8 property markets FY25 sales up 18% despite 8% drop in launches
The housing property markets across the top 8 Indian cities have stayed strong in the financial year 2024–25, with over 5 lakh units sold, an 18% on-year growth. New launches, however, dipped 8% to 4.3 lakh units, indicating a cautious stance from realty developers, showed data from Liases Foras Real Estate Rating & Research. #Pahalgam Terrorist Attack The groundwork before India mounts a strike at Pakistan India considers closing airspace to Pakistani carriers amid rising tensions Cold Start: India's answer to Pakistan's nuclear threats Despite the slowdown in new supply, unsold inventory remained under control at around 8 lakh units, with a healthy inventory overhang of just 19 months. Property prices inched 3.7% higher, backed by steady demand and fewer launches. With current inventory levels staying efficient, there's little risk of a price correction and moderate price growth is more likely, Liases Foras said. Going forward, while Mumbai Metropolitan Region (MMR), Pune, and Hyderabad may experience some cooling, and markets like National Capital Region (NCR), Bengaluru, and Chennai are expected to continue growing. Supporting this resilience, Mumbai's property registration numbers have held steady, adding to the overall market confidence. With the current inventory overhang of 19 months, the situation remains well balanced, the report said. Live Events According to Liases Foras, the dip in new supply is not a cause for concern, as the existing unsold inventory is sufficient to meet current demand, supporting healthy and efficient market dynamics. However, it has also highlighted the markets have witnessed a plateau in sales led by reduced new launches in the last two quarters, after around four years of growth rally. Liases Foras expects moderation in the luxury and ultra-luxury segments going forward with early signs of growth in the affordable and mid-segment. With reduction in interest rates, it expects improved affordability, which will boost the affordable market across tier I and tier II cities.
Time of India
28-04-2025
- Business
- Time of India
Housing demand, price growth to moderate in FY26 amid increasing inventory levels
Domestic housing demand in India has remained steady, despite the global recessionary trends and elevated interest rates. Consumer sentiments towards home ownership, given the benefits associated with it, have been strong and driving the demand. #Pahalgam Terrorist Attack India stares at a 'water bomb' threat as it freezes Indus Treaty India readies short, mid & long-term Indus River plans Shehbaz Sharif calls India's stand "worn-out narrative" However, the housing demand growth momentum is expected to taper down in 2025-26, due to the high base of 2024-25 and elevated price levels, to 8%-10% on year said India Ratings and Research (Ind-Ra). Based on Liases Foras data as of December 2024, the home sales grew 32% yoy in FY24 in the top eight real estate cities – Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Pune. The ratings agency expects the growth to moderate, with the overall sales growing about 17% yoy to 593msf in FY25 and further decline to about 9% yoy in FY26. In the first nine months of FY25, the MMR accounted for the largest micro-market with a 25% share among the top eight real estate cities, followed by Hyderabad and Pune. Chennai posted the highest growth of 46% on-year in the first three quarters of FY25. 'FY26 is likely to see continued positive growth in bookings, although at a slower pace due to the base effect and moderation in affordability. Among the top eight cities, the NCR, Bengaluru, and the MMR are likely to remain relatively resilient in bookings, except for the luxury segment. Developers may continue to experience positive growth in collections and operating cash flows, leading to a sustained strong balance sheet. This is enabled by sector consolidation and delayed launches amid limited unsold stock,' said Mahaveer Shankarlal Jain, Director, Corporate Ratings, Ind-Ra. FY24 and first three quarters of FY25 had seen a rise in the performance of tier II and other players as the affordability dipped and buyers looked for alternatives to premium priced apartments and houses by tier I players. Ind-Ra expects tier I residential players to still continue to lead and generate strong sales, considering the market consolidation in their favour and goodwill and brand recognition among customers. However, Ind-Ra expects this consolidation to continue to moderate through FY26. Based on Liases Foras data for the top eight cities for 9MFY25, unsold inventory levels increased marginally to 1,027 million sq ft at end-9MFY25, owing to the continued trend of new launches, while the overall quarters-to-sell (QTS) declined further to about 7 quarters from 9 quarters, on the back of a steady increase in in trailing twelve months (TTM) average sales to 566 million sq ft from 418 million sq ft. Based on Liases Foras data for the top eight cities, the industry witnessed moderate launches in response to the market demand in 9MFY25, leading to a modest oversupply risk in the medium term. For instance, strong launches led to a 26% yoy increase in the total inventory for the top eight cities in FY23. However, launches thereafter have moderated, with 8% yoy growth in FY24 and 9% yoy growth in 9MFY25, keeping the inventory levels moderate. Ind-Ra expects the launch momentum to remain strong in FY26 as well, due to the business development activities taken up in FY24 and FY25 on back of the strong sales response. The K-shaped demand continued wherein the affordable segment witnessed a decline in sales of about 11% yoy in 9MFY25, basis the aggregate sales across the top eight cities. The affordable housing segment 's share had decreased to 18% FY24 (FY23: 27%), indicating a continued decline in the segment. In 9MFY25, the average price across top eight cities increased at 8% yoy (FY24: 21% yoy, FY23: 14% yoy) and is likely to moderate further to 3%-4% yoy in FY26 due to the base-effect moderating demand growth and several launches planned, which could moderately increase the inventory levels. The Bengaluru market witnessed the highest surge in prices in 9MFY25 at 23% yoy, followed by NCR (13% yoy) and Pune (12% yoy). Ind-Ra's peer-set of listed players registered a decline of around 8% yoy pre-sales volumes in 9MFY25, as the base effect begins to play out. However, their EBITDA increased 26% yoy in 9MFY25 (9MFY24: 29% yoy), led by faster constructions and collections, as well as better realisations. Consequently, the gross interest coverage (EBITDA/gross interest expense) improved to about 3.72x in 9MFY25 from 3.41x a year ago. The unsold inventory levels are likely to have continued to inch up in absolute number for FY25; and this might continue in FY26, as the number of new launches is likely to continue to be higher than the demand. Disbursements from housing finance companies to the real estate sector continued to gradually increase through 9MFY25. Conversely, the trend of declining assets under management towards real estate (steady decline since FY19) for non-bank finance companies also continued, despite an improvement in liquidity conditions.
