Mumbai Continues to Dominate as India’s Largest Residential Real Estate Market
Mumbai has maintained its position as the largest residential real estate market in India, leading in residential sales and new supply among major cities. The robust market performance is attributed to strong sales momentum and significant infrastructure
Mumbai Real EstateResidential MarketProperty PricesInfrastructure DevelopmentMarket GrowthReal Estate PuneJan 07, 2025
The city recorded a significant spike in residential sales, with 96,187 primary residential units sold in 2024, marking a 13-year high and an 11% YoY growth.
The second half of 2024 alone saw the sale of 48,928 units, reflecting a 6% YoY increase.
Developers, capitalizing on the strong sales momentum, introduced a 4% YoY increase in new supply, with 96,470 new units launched in 2024—the highest since 2014.
This influx of new projects, coupled with a 5% YoY rise in average residential prices, indicates a healthy and growing market.
Key Highlights of Mumbai’s Real Estate Market in 2024
Robust Sales Performance
Mumbai’s residential market sustained its strong performance, recording the highest half-yearly sales volume since H1 2012.
The latter half of 2024 saw a 4% increase in sales compared to the first half, driven by heightened demand during festive seasons like Navratri, Dussehra, and Diwali.
These festivals traditionally boost real estate activity by enhancing market sentiment and encouraging buyers to make purchases.
Peripheral Regions Attract More Buyers
Peripheral regions, such as the Central Suburbs and Thane, dominated launches and sales in H2 2024.
These areas are attracting buyers with more affordable prices and enhanced lifestyle options, thanks to ongoing infrastructure projects and improved connectivity.
Projects like the Mumbai Coastal Road, Metro Line 3, and the Mumbai Trans Harbour Link (MTHL) have played a crucial role in this growth.
Price Segmentation and Growth Trends
In 2024, a substantial portion of properties transacted in Mumbai fell within the <5mn category, although the share decreased from 45% in 2023 to 43% in 2024.
Notably, there was a shift towards higher ticket sizes, with the Rs 10 mn – 20 mn category increasing its share from 17% to 20%, and the Rs 20 – 50 mn category seeing a rise from 6% to 10%.
Mumbai led the residential sales for the ticket size segments of Rs 200 – 500 mn and >500 mn.
The highest percentage growth was observed in the Rs 200 – 500 mn segment, with an annual growth of 143% YoY to 192 units.
The Rs 50 – 100 mn category grew by 112% YoY to 1,866 units, while the Rs 100 – 200 mn category increased by 68% YoY to 360 units.
However, the price segment above 500 mn saw a decline of 60%, from 255 units in 2023 to 101 units in 2024.
Price Appreciation
Mumbai experienced a 5% annual growth in residential prices, reaching a record-high weighted average price of Rs 8,277 per sq ft.
This is the highest weighted average price among the eight major cities in India.
Central Mumbai and South Mumbai saw the maximum residential price appreciation at 8% and 7% respectively.
Expert Insights
Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure and Valuation at Knight Frank India, commented, “Mumbai’s residential market continues its steady growth, driven by sustained demand for premium housing and transformative infrastructure developments.
While elevated QTS levels in higher ticket sizes require careful monitoring, the market’s robust fundamentals provide stability and long-term growth prospects.
Key infrastructure projects like the Mumbai Coastal Road and Metro Lines have greatly improved connectivity, fuelling demand in suburban areas.
These advancements inspire confidence in the market, benefiting both buyers and developers alike.”
Conclusion
Mumbai’s real estate market remains robust and is poised for continued growth, thanks to a combination of strong demand, strategic infrastructure development, and a thriving economic ecosystem.
As the city continues to attract more residents and investors, it is likely to maintain its position as India’s premier residential real estate hub.
Frequently Asked Questions
What was the total number of residential units sold in Mumbai in 2024?
Mumbai recorded the sale of 96,187 primary residential units in 2024, marking a 13-year high and an 11% YoY growth.
Which peripheral regions in Mumbai dominated sales in H2 2024?
The Central Suburbs and Thane dominated launches and sales in H2 2024, attracting buyers with more affordable prices and enhanced lifestyle options.
What was the highest percentage growth observed in the residential market for any price segment in 2024?
The highest percentage growth was observed in the Rs 200 – 500 mn segment, with an annual growth of 143% YoY to 192 units.
What was the record-high weighted average price of residential properties in Mumbai in 2024?
Mumbai experienced a 5% annual growth in residential prices, reaching a record-high weighted average price of Rs 8,277 per sq ft.
Which infrastructure projects have significantly improved connectivity in Mumbai?
Key infrastructure projects like the Mumbai Coastal Road, Metro Line 3, and the Mumbai Trans Harbour Link (MTHL) have greatly improved connectivity, fuelling demand in suburban areas.
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