Pandemic forces apartment size expansion by 5% in Navi Mumbai
The city registered residential sales of 2,384 units year on year in second half of 2020 and new launches at 2,860 units YoY during the period
With the increase in demand for a larger home space owing to the on-going pandemic, the apartment size in new launches in Navi Mumbai has seen a rise of 5% to 722 sq ft in second half of 2020 compared to 685 sq ft in 2019, according to Knight Frank’s latest India Real Estate H2 2020 report.
The city registered residential sales of 2,384 units year on year in second half of 2020 and new launches at 2,860 units YoY during the period.
Home sales in Mumbai Metropolitan Region (MMR) witnessed a rise of 10.39% year on year to 30,041 units in second half of 2020 and new launches saw a decline of 25.26% year on year to 26,904 units. The boom in residential sales can largely be attributed to the recent state government announcement of stamp duty reduction from 5-7% to 2-4% across various MMR regions effective for seven months from September 2020.
"As homebuyers in the mid and high-income groups have made most of the lower stamp duty window, 57% of units sold in MMR were in the >INR 5 million (>INR 50 lakh) segment," the report said.
In the context of connectivity and infrastructure development, Navi-Mumbai is well connected to Mumbai with railway networks and the Vikhroli-Kopar Khairne Link Road, as well as to Pune with railways and the Mumbai Pune Express Highway.
The area of the city was developed to be an organized and planned extension of Mumbai, which is why it has planned sanitation, progressive transit infrastructure and numerous, well-spaced out social infrastructure provisions such as parks, schools, gymnasiums.
Navi Mumbai already has a fully functioning JNPT shipping port and plans to house Mumbai’s second international airport at Panvel.
Residential property prices in the areas of Kharghar (6,700 – 9,000 psf) and Panvel (3,800-6,500 psf) have witnessed a -4% YoY correction, while prices in the residential market of Vashi (10,000 – 15,000 psf) witnessed a minor correction of -2% YoY in second half of 2020.
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