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Malabar Hill Micro-Market: A Beacon of Growth in Mumbai Real Estate

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Malabar Hill Micro-Market

In the dynamic landscape of Mumbai Real Estate, the Malabar Hill micro-market stands out as a beacon of growth, showcasing a remarkable 10% appreciation in premium housing. According to a recent study conducted by Liases Foras, an independent non-broking real estate research company, this micro-market, which encompasses Malabar Hill, Cumbala Hill, and Walkeshwar, has witnessed an impressive surge in sales and pricing during the third quarter of 2023-24.

Mumbai Real Estate Market Overview:

The study sheds light on 14 different projects by 12 developers at various stages of construction within this catchment. Over the last 12 months, the micro-market has experienced sales of 52 units, reflecting a noteworthy 10% year-on-year increase. The appreciation in premium housing is exemplified by an average weighted carpet area price reaching ₹1.01 lakh per sq ft in Q3 of 2023-24.

Project Highlights:

Among the notable projects, Lodha Malabar on Walkeshwar Road stands out, set to be completed by 2027. This project has already marked a significant milestone by selling 10 units worth ₹1202 crore in the Jan-Mar quarter of 2023, underlining the robust demand for premium real estate in Malabar Hill.

Infrastructure Development and Connectivity:

Malabar Hill is poised to benefit from key infrastructure developments in South Mumbai, including the Cuffe Parade to Seepz underground Aqua Metro Line and the Coastal Road project. These initiatives aim to enhance connectivity to an area synonymous with the city’s high-net-worth individuals.

The study indicates that the Girgaon metro station, located 2.1 km from Malabar Hill via Walkeshwar Road, will facilitate a seven-minute commute. Additionally, the Coastal Road project is set to connect Kandivali in the north to Marine Drive in the south, fostering increased footfall from the western suburbs.

Sales Dynamics and Inventory:

The micro-market has witnessed a substantial growth trajectory, with sales escalating from 17 units in Q3 2019 to 29 in Q3 2022 during the post-Covid recovery. This momentum peaked in Q3 2023, recording sales of 52 units. Unsold inventory, which stood at 248 units in 2019, has significantly decreased to 146 units in Q3 2023.

Price Trends and Configuration Preferences:

Despite a gradual decline in the average weighted carpet area price from ₹95,240 per sq ft to ₹92,718 per sq ft in 2022, the market has experienced a historic moment. For the first time in five years, the average price has crossed ₹1 lakh per sq ft, indicating a positive shift in the market dynamics.

The analysis of carpet area and ticket sizes reveals a preference for 4BHK configurations, constituting 67% of total sales. Homes with carpet area sizes between 2400 to 2700 sq ft in the price bracket of ₹30-35 crore have emerged as the favored choice.

Base Price Analysis and Buyer Preferences:

The base price analysis showcases that 13 of the 52 units were sold in the ₹30-35 crore price bracket, followed by 10 units in the ₹45-50 crore range and six units in the ₹95-100 crore range. Notably, 35 of these units were 4BHKs, aligning with the maximum marketable supply of 150 units in this segment. Other configurations, including 5HKs, duplexes, a 6BHK duplex, a 5BHK penthouse, and two triplexes, also gained traction.

Malabar Hill micro-market Insights and Future Outlook:

Pankaj Kapoor, Managing Director of Liases Foras, attributes the present momentum towards larger-sized homes to the post-Covid need for upgrades. He notes that the period between 2016 and 2021 witnessed stagnant prices as high net worth individuals refrained from investing in real estate. The current resurgence, coupled with the growth in HNI wealth, has seen increased investments in luxury homes and products, fueled by the confidence instilled by improved transparency post-RERA.

In conclusion, the Malabar Hill micro-market exemplifies a resurgence in Mumbai Real Estate, showcasing robust sales, reduced inventory, and a significant appreciation in premium housing. As the city’s high net worth individuals express an inclination for larger spaces, the market’s positive trajectory is poised to continue, driven by both external factors and evolving buyer preferences.

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