The real estate market of Mumbai Metropolitan Region (MMR) is on the path of recovery after witnessing a decline for over one year, said a latest report by real estate consultancy firm on Monday.
  
Knight Frank India in its fifth half-yearly report named 'India Real Estate' said that new launches in the residential market in MMR grew by 29% year-on-year and absorption has increased by 23% year-on-year (y-o-y). 

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 “The residential market of MMR is on a new growth path. New launches and sales are 29% and 23% higher, respectively in the first half (H1) of 2016 year-on-year,” Knight Frank India's chief economist and national director-research Dr Samantak Das said in a statement. 

However, considering that new launches and sales are still 50% and 13% lower respectively than the last five years’ average, these are early days to rejoice, Das added.

The demand for residential housing in MMR during the first six months of 2016 was primarily driven by the mid and budget segments housing, while premium markets yet to seen any pick up. 

The prices of residential market in MMR are witnessing time correction, Knight Frank India said. 

The unsold inventory in the residential market of MMR was down by 20% in last two years and the quarters required to sell unsold inventory (QTS) came down from 12% to 10% in H1 2016. 

“While the residential segment in general witnessed the lowest number of new launches in the last three years across the top eight cities in H1 2016, Mumbai with its growth in new launches has proved to be a revelation,” Knight Frank India's director – residential and land (Mumbai), Fali Poncha, said in a statement. 

“We forecast a 16% growth in sales in 2016 over 2015 thus continuing Mumbai’s growth story,” Das said.