Mumbai Real Estate Market Reaches 13-Year High in 2024, According to Knight Frank Report
Mumbai's real estate market has hit a 13-year high in 2024, with both residential and office sectors showing significant growth. The Indian city continues to dominate with strong demand, especially in premium housing and office spaces, backed by transform
Mumbai Real EstateResidential MarketOffice MarketProperty SalesInfrastructure ProjectsReal Estate MaharashtraJan 07, 2025
According to Knight Frank India’s India Real Estate – Office and Residential Market (July–December 2024) report, the city witnessed the sale of 96,187 residential units, marking a 13-year high with an 11% year-on-year (YoY) increase.
In the second half alone, 48,928 units were sold, driven by the festive season demand and numerous new project launches.
Developers responded by introducing 96,470 new units, the highest supply since 2014, alongside a 5% rise in average residential prices.
Peripheral areas like Thane and the Central Suburbs dominated the launches and sales, attracting buyers with competitive pricing and enhanced amenities.
While properties under Rs 5 million continued to account for a large share of sales, there was a notable shift toward higher price segments.
Sales in the Rs 10–20 million bracket rose to 20%, up from 17% in 2023, and the Rs 20–50 million category saw its share climb from 6% to 10%.
Premium property sales surged, with the Rs 200–500 million segment witnessing a remarkable 143% YoY increase.
However, the ultra-luxury segment above Rs 500 million recorded a sharp 60% decline.
Gulam Zia, Senior Executive Director at Knight Frank India, attributed Mumbai’s continued growth to strong demand for premium housing and transformative infrastructure projects such as the Mumbai Coastal Road, Metro Line 3, and the Mumbai Trans Harbour Link.
In the office real estate sector, Mumbai achieved a historic 40% YoY increase in leasing activity, reaching 10.4 million sq ft of transactions—the highest in over a decade.
India-facing businesses dominated, accounting for 77% of transactions.
New office supply surged by 89% YoY to 5.8 million sq ft, with significant additions in SBD West.
Viral Desai, Senior Executive Director at Knight Frank India, highlighted the impact of improved metro connectivity, including the BKC metro, on accessibility and occupier demand.
Office rents grew by 3.5% YoY, with an average transacted rent of Rs 118 per sq ft per month.
Mumbai’s real estate sector remains buoyant, with sustained demand, infrastructure advancements, and evolving market trends positioning the city for continued growth in 2025.
Frequently Asked Questions
What is the current status of Mumbai's residential real estate market?
Mumbai's residential real estate market has reached a 13-year high in 2024, with 96,187 units sold, marking an 11% year-on-year increase. Peripheral areas like Thane and the Central Suburbs are leading in sales and launches.
What factors are driving the growth in Mumbai's real estate market?
The growth is driven by strong demand for premium housing and significant infrastructure projects such as the Mumbai Coastal Road, Metro Line 3, and the Mumbai Trans Harbour Link.
How has the price segment distribution changed in Mumbai's residential market?
There has been a notable shift toward higher price segments. Sales in the Rs 10–20 million bracket rose to 20%, up from 17% in 2023, and the Rs 20–50 million category increased from 6% to 10%.
What are the key trends in Mumbai's office real estate market?
Mumbai's office real estate market has seen a 40% year-on-year increase in leasing activity, reaching 10.4 million sq ft of transactions. India-facing businesses dominate, accounting for 77% of transactions, and new office supply surged by 89% YoY.
What is the future outlook for Mumbai's real estate sector?
Mumbai's real estate sector remains positive, with sustained demand, infrastructure advancements, and evolving market trends positioning the city for continued growth in 2025.
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