Mumbai's Real Estate Market Continues to Dominate India's Residential Sector
Mumbai saw a 5% annual growth in residential prices, reaching a record-high weighted average price of Rs 8,277 per sq ft, solidifying its position as India's largest residential hub.
Mumbai Real EstateResidential MarketInfrastructureProperty PricesSales GrowthReal Estate MumbaiJan 07, 2025
According to a report by Knight Frank India, Mumbai recorded the highest residential sales among eight major cities in the country, including the National Capital Region (NCR), Bengaluru, Chennai, Hyderabad, Pune, Ahmedabad, and Kolkata.
In 2024, Mumbai saw the sale of 96,187 primary residential units, marking a 13-year high with an 11% year-over-year (YoY) growth.
The latter half of the year alone witnessed the sale of 48,928 units, reflecting a 6% YoY increase.
This strong performance was driven by sustained buyer demand and robust infrastructure developments.
Strong Sales Momentum
Developers capitalized on the strong sales momentum by introducing new supply to the market, resulting in a 4% YoY increase with 96,470 new units launched in 2024—the highest since 2014.
The average residential prices also saw a 5% YoY growth, reaching a record-high weighted average price of Rs 8,277 per sq ft.
This price increase was particularly notable in Central Mumbai and South Mumbai, where residential prices appreciated by 8% and 7%, respectively.
Impact of Infrastructure Projects
Mumbai's residential market has been further bolstered by transformative infrastructure projects such as the Mumbai Coastal Road, Metro Line 3, and the Mumbai Trans Harbour Link (MTHL).
These projects have significantly improved connectivity, making suburban areas more attractive to buyers.
The Central Suburbs and Thane, in particular, dominated launches and sales in H2 2024, attracting buyers with more affordable prices and enhanced lifestyle options.
Festive Seasons Drive Demand
The latter half of 2024 saw a 4% increase in sales compared to the first half, primarily fuelled by heightened demand during festive seasons like Navratri, Dussehra, and Diwali.
These festivals traditionally drive real estate activity, creating a positive market sentiment.
Developers responded to this demand by introducing new projects and offering attractive payment plans.
Home Price Ticket Categories
In 2024, a substantial portion of properties transacted in Mumbai fell within the <5mn category.
However, the share decreased from 45% in 2023 to 43% in 2024.
Notably, there was a shift towards the Rs 10 mn – 20 mn category, with its share increasing to 20% as opposed to 17% in 2023.
The Rs 20 – 50 mn category also saw an increase from 6% in 2023 to 10% in 2024.
Mumbai led the residential sales for the ticket size segments of Rs 200 – 500 mn and >500 mn.
The highest percentage growth in the city’s residential market was observed in the Rs 200 – 500 mn segment, with an annual growth of 143% YoY to 192 units during 2024 from 79 units in 2023.
The sales in the Rs 50 – 100 mn category grew by 112% YoY to 1,866 units, and the Rs 100 – 200 mn category grew by 68% YoY to 360 units in 2024.
Market Outlook
Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure and Valuation, 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 has shown remarkable resilience and growth, driven by a combination of economic stability, robust infrastructure, and strategic planning by developers.
The city’s continued dominance in the residential sector underscores its significance as a leading real estate hub in India.
Frequently Asked Questions
How many residential units were sold in Mumbai in 2024?
Mumbai recorded the sale of 96,187 primary residential units in 2024.
What was the year-over-year growth in residential sales in Mumbai?
Mumbai saw an 11% year-over-year (YoY) growth in residential sales in 2024.
What is the record-high weighted average price of residential properties in Mumbai as of 2024?
The record-high weighted average price of residential properties in Mumbai as of 2024 is Rs 8,277 per sq ft.
Which infrastructure projects have contributed to the growth of Mumbai's real estate market?
Key infrastructure projects like the Mumbai Coastal Road, Metro Line 3, and the Mumbai Trans Harbour Link (MTHL) have significantly contributed to the growth of Mumbai's real estate market.
Which areas in Mumbai saw the highest residential price appreciation in 2024?
Central Mumbai and South Mumbai saw the highest residential price appreciation in 2024, with 8% and 7% growth, respectively.
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