As rains batter Mumbai and cases of waterlogging get reported across the city, the biggest casualties is the city’s real estate sector. According to real estate experts, during the monsoon, the real estate transactions are comparatively lesser and walk-ins greatly reduced between the months of July to August. The Mumbai real estate market gains momentum with the onset of the festive season starting with the Ganesh festival.
“Housing sales tend to decrease during the monsoon season (July – Sept) compared to other quarters of the year. This has more to do with prospective homebuyers’ inability to go out for site visits during rains, which seriously affect mobility in Mumbai, than with an actual dip in demand,” said Rajkumar Singh, Head – Residential Services (West), ANAROCK Group, a real estate consultancy firm.
“Also, many homebuyers postpone their home buying decision for the festive season between October and December, which is considered the most auspicious period for buying a home. If we consider past data trends, out of the four quarters in 2019, the monsoon quarter (July-Sept) saw the least sales,” Singh added.
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According to ANAROCK Research data, in Mumbai Metropolitan Region (MMR)’s primary market as many as 17,180 units were sold in Q3 2019 as against 24,000 units in Q1 2019, approximately 21,630 units in Q2 2019 and over 18,320 units in Q4 2019.
Similarly in the post Covid-19 pandemic period, in Q1 of calendar year 2022, 29,130 homes were sold in MMR, 25,785 homes were sold in Q2, 26,400 homes were sold in Q3 and in Q4, 28,148 homes were sold.
In terms of property registrations, 31,836 property registrations were reported in the first quarter of the calendar year of 2023 in Mumbai, 30,656 in Q2, 31,817in Q3 and 32,598 in Q4 of 2023, according to data shared by Knight Frank India, a real estate consultancy firm.
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After Covid-19, the trend of lesser transactions during monsoon season did not get reflected on account of pent up demand and also on account of the Mumbai real estate market experiencing an uptick in the real estate cycle. Having said that, deal closures during the monsoon period between July and August are less, real estate brokers said.
Waterlogging impacts real estate prices in Mumbai
According to real estate consultants, waterlogging impacts prices of real estate projects in Mumbai. Life can seriously be thrown out of gear on account of waterlogging and that impacts both the property prices and rentals in the city.
Experts say that property rates in the micro market can be 10-20% less when it comes to purchasing or renting an apartment in an area that is prone to flooding or water logging.
“If a homebuyer is purchasing or renting an apartment in an area that is prone to waterlogging, he or she will negotiate hard to get a 5% to 20% discount on the property price,” said a property consultant from Mumbai’s suburbs not wishing to be named.
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There are several areas, including Gandhi Market in Sion, Hindmata near Dadar, Nana Chowk in Grant Road, Milan Subway in Vile Parle and Dahisar subway where waterlogging is a perennial issue and property prices are impacted.
Yellow alert issued by IMD due to Mumbai Rains
The India Meteorological Department (IMD) has issued a yellow alert (heavy rainfall) for Mumbai till July July 24. The Mumbai city has received more than 1,000 mm of rainfall in the last two weeks.
