Mumbai Real Estate: 27% Fewer Units launched in CY23 Compared to CY22

The Mumbai real estate market witnessed a significant shift in 2023, marking a 27% decline in new launches compared to 2022. Despite this dip, key trends in unit configuration, location preferences, and pricing offer a clear snapshot of where the market is heading. Whether you are exploring flats for sale in Mumbai, investing in luxury apartments in Mumbai, or following the broader Mumbai property trends, this article will help you navigate the changes.

Supply and Demand Trends in 2023

According to MahaRERA data, the city witnessed a total of 52,771 unit launches in calendar year 2023 (CY23). This marks a 27% decline from 72,389 units launched in CY22. The sharpest drop was seen in the second half of 2023, where launches stood at 23,645 units compared to 29,126 in the first half.

Reasons Behind the Drop:

• The end of premium cuts by the Maharashtra government.
• Saturated inventory post-pandemic boom.
• Rising construction costs and interest rates.

Despite fewer launches, the focus shifted to better design, quality, and carpet area—especially in 3.5 and 4 BHK units.

Rising Demand for Spacious Homes

While launch volumes declined, Mumbai property prices remained relatively stable. Developers are cautious about price hikes due to subdued demand and high unsold inventory. A total of 1,509 units in this category were launched in CY23—higher than 2022 (1,402), 2021 (979), and 2020 (504).

This trend reflects changing consumer preferences toward larger homes, especially in central locations. Many buyers now prioritize comfort and luxury, leading to a surge in luxury apartments in Mumbai.

3.5 and 4 BHK Segment Grows Stronger

In a surprising twist, the 3.5 and 4 BHK category hit a three-year high of 1,509 units in CY23. This is higher than the 1,402 units launched in CY22, 979 in CY21, and 504 in CY20.

Why Larger Units Are Rising:

• Post-pandemic preference for bigger homes.
• Higher budget capacity among working couples and NRIs.
• Focus on lifestyle amenities and private spaces.

This luxury segment now forms a core part of Mumbai real estate’s future supply, particularly in north and central Mumbai.

1 BHK Units Still Hold Demand

Even as larger units gained popularity, 1 BHK units continued to dominate volumes. While larger homes are gaining attention, 1 BHK in Mumbai continues to dominate the affordable segment. The unit launch ratio for 1 BHK homes increased from:

• 30% in H1 2023 to 34% in H2 2023.
• 31% in CY22 to 32% in CY23.

The rise shows that Mumbai’s affordable housing segment remains critical for first-time buyers, migrants, and small families.

Regional Focus: Where the Launches Happened

MahaRERA data reveals that nearly 90% of new launches in CY23 happened in north and central Mumbai. Key micro-markets include:

• Dadar and Sion: High-ticket launches in redeveloped chawls and old societies.
• Kandivali West: Strong demand for mid-size 2 BHK homes.
• Chembur, Bhandup West, and Mulund West: Over 1,000 units launched in each area.

These zones benefit from metro connectivity, infrastructure upgrades, and social amenities.

Price Stability and Premium Pressure in 2024

While launch volumes declined, Mumbai property prices remained relatively stable. Developers are cautious about price hikes due to subdued demand and high unsold inventory. However, premium and redevelopment areas saw a slight increase due to location and configuration advantages. Developer Rahul Ajmira notes, “In 2021–2023, supply rose to 50,000–70,000 units per year due to a 50% cut in premiums by the state government. This spurred high supply post-COVID-19.”

However, while supply jumped, sales didn’t keep pace. This demand-supply mismatch is now:

• Putting pressure on prices.
• Leading to cautious launches in 2024.
• Forcing developers to optimize carpet area and design.

Post-COVID Launch Trends and Luxury Shift

Over 60% of new launches occurred after the pandemic. Developers introduced bigger apartments with an average carpet area of 150 sq. m (1,600 sq. ft) in CY23. The demand for premium homes in gated communities with modern amenities has reshaped project designs across Mumbai.

Buyers now seek:

• Private balconies
• Work-from-home zones
• Rooftop leisure spaces
• Smart home integration

These features have become essential selling points in high-ticket residential offerings.

Regulatory Oversight by MahaRERA

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has played a key role in:

• Enforcing project timelines
• Enhancing buyer transparency
• Registering and approving new launches

Every real estate project in Mumbai must comply with MahaRERA regulations, including disclosures on carpet area, delivery schedules, and promoter history. This ensures that investors and end-users can make informed decisions in the Mumbai real estate market.

What It Means for Investors and Homebuyers

For Investors:

• Short-term ROI may remain flat in 2024 due to high inventory.
• Long-term opportunities lie in redevelopment zones and north-central suburbs.
• Bigger apartments yield better rental income and future capital gains.

For Homebuyers:

• This is a good time to buy in areas like Mulund, Chembur, and Bhandup.
• 1 BHK homes remain affordable, but demand may raise prices in 2025.
• Ready-to-move projects are safer given delayed new launches.

What to Expect in 2024

• New launches to stay below 50,000 units unless incentives return.
• More focus on mid-segment luxury homes (2.5–3 BHK).
• Developers may reduce unsold inventory before launching new phases.
• Redevelopment of old buildings in Dadar, Sion, and Byculla will increase.

Conclusion

Despite a dip in overall supply, the Mumbai real estate market in 2023 showed resilience. The rise in 3.5 and 4 BHK units, post-pandemic preferences, and strategic location launches indicate a more mature market. With MahaRERA keeping checks and new infrastructure driving interest, Mumbai continues to be a dynamic and attractive destination for both buyers and investors.

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