Mumbai Rains: During the monsoon, the walk-in homebuyer’s activity slows down, impacting housing transactions

The real estate industry in Mumbai has suffered the most as a result of the heavy rains and the numerous cases of waterlogging that have been reported. Real estate experts claim that between July and August, during the monsoon, walk-ins are significantly lower, and real estate transactions are relatively lower. The Ganesh festival heralds the beginning of the holiday season, causing a surge in the Mumbai real estate market.

Compared to other quarters of the year, housing sales typically decline during the monsoon season (July-September). This has less to do with a real decline in demand and more to do with potential homeowners’ incapacity to visit possible properties during rainy seasons, which significantly impair Mumbai’s mobility” said Rajkumar Singh, Head of Residential Services (West), ANAROCK Group, a real estate consulting firm. 

Additionally, many people wait to buy a house until the holiday season, which falls between October and December and is thought to be the most auspicious time to do so. Considering past data trends, Singh said the fourth monsoon quarter (July-Sept) 2019 has the lowest sales of the four.

Statistics show that in the main market of the Mumbai Metropolitan Region (MMR), sales reached 17,180 units in Q3 of 2019 compared to 24,000 units in Q1 of 2019, roughly 21,630 units in Q2, and more than 18,320 in Q4.

Comparatively, in MMR in Q1 of 2022, 29,130 homes were sold during the post-COVID-19 pandemic period; in Q2, 25,785 homes, 26,400 homes, and in Q4, 28,148 homes.

A real estate consulting company called Knight Frank India shared data regarding property registrations, showing 31,836 property registrations in Mumbai in the first quarter of 2023, 30,656 in Q2, 31,817 in Q3, and 32,598 in Q4.

Due to pent-up demand and an uptick in the Mumbai real estate market’s real estate cycle, the trend of fewer transactions during the monsoon season did not continue after COVID-19. 

Though fewer transactions were closing during the monsoon season, which runs from July to August, real estate brokers did notice this.

Mumbai real estate values are impacted by flooding

Real estate advisors claim that waterlogging affects Mumbai real estate project costs. Waterlogging can cause major disruptions to daily life, which impacts the city’s real estate market and rental income.

When buying or renting an apartment in an area prone to flooding or waterlogging, experts say that property rates in the micro market can be as much as 10%-20% less.

“A buyer will work hard to negotiate a 5% to 20% discount on the property price if he or she is buying or renting an apartment in an area prone to waterlogging,” a property consultant from Mumbai’s suburbs who wished to remain anonymous said.

Waterlogging is a recurring problem that affects property prices in several areas, such as Gandhi Market in Sion, Hindmata near Dadar, Nana Chowk in Grant Road, Milan Subway in Vile Parle, and Dahisar subway. 

IMD issued a yellow alert due to rain in Mumbai.

There will be heavy rainfall in Mumbai through July  24th, according to the India Metrological Department’s (IMD) yellow alert. Mumbai has experienced over 1,000 mm of rain in the last two weeks.