The Mumbai real estate market has witnessed unprecedented growth in 2024, with property registrations soaring by 12% year-on-year (Y-o-Y) to surpass 1 lakh deals from January to September. According to data compiled by Knight Frank India, the Mumbai municipal region recorded a total of 105,664 property registrations during this period, compared to 94,309 units in the same timeframe last year. This remarkable surge highlights the robust demand for real estate in India’s financial capital.
Key Highlights
- Property Registrations: Over 105,664 properties registered in the first nine months of 2024, marking a significant 12% increase Y-o-Y.
- State Revenue: The state government garnered approximately ₹8,892 crores in revenue from property sales registrations, reflecting a 6% Y-o-Y growth.
- Residential Market: Residential units comprised a significant 80% of total registrations in September 2024, underscoring the continuing demand for housing.
Market Dynamics
The consistent momentum in property transactions is driven by rising economic prosperity, increased disposable income, and a growing preference for homeownership among residents of Mumbai. Shishir Baijal, Chairman & Managing Director of Knight Frank India, stated, “Mumbai’s residential market has sustained strong momentum in 2024, with September marking a key milestone as the city surpassed 100,000 property registrations — the fastest pace in a decade.”
Shift Towards Higher-Value Properties
A notable trend in 2024 is the increasing demand for higher-value properties. In September 2024, properties priced at ₹2 crore and above constituted 23% of all registrations, up from 18% in September 2023. Conversely, the share of properties valued at under ₹50 lakh decreased from 28% to 17%, indicating a shift towards more affluent buyers entering the market.
Preference for Larger Spaces
The data also reveals a growing preference for larger living spaces among homebuyers:
- Apartments measuring between 500-1,000 sq ft accounted for 52% of all property registrations.
- The share of apartments measuring 1,000 sq ft and above increased from 19% in 2023 to 22% in 2024, reflecting a desire for more spacious living environments.
Geographic Trends
The Western and Central suburbs continue to dominate the Mumbai real estate market, accounting for a staggering 83% of total registrations. Interestingly, South Mumbai has seen a resurgence, with its market share increasing from 7% in September 2023 to 10% in September 2024, suggesting renewed interest in premium properties in this historically prestigious locale.
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September Slowdown
Despite the overall positive trend, September 2024 witnessed a 14% Y-o-Y decline in property registrations, with revenue falling 21% Y-o-Y to ₹892 crores. This dip is largely attributed to the inauspicious ‘shraadh’ period, which lasted for 12 days in September 2024, traditionally regarded as an unfavorable time for major transactions in Hindu culture.
Future Outlook
Looking ahead, market analysts expect the current trend of robust property registrations to persist, particularly with the festive season approaching. Akhil Saraf, founder and CEO of proptech firm Reloy, noted, “We anticipate a continued uptick in registrations, especially with the festive season on the horizon and the expectation of an interest rate cut by the Reserve Bank of India (RBI) in the upcoming monetary policy review. The recent 50 basis points rate cut by the Federal Reserve has set a precedent, fueling optimism for a similar move in India.”
In conclusion, the Mumbai real estate market is poised for sustained growth as economic conditions continue to improve and consumer preferences evolve. With a notable increase in property registrations and a clear shift towards higher-value, larger living spaces, the landscape of Mumbai’s real estate is undergoing a significant transformation. Investors and homebuyers alike are keenly observing these trends, which could shape the future of real estate in the city for years to come.
