Mumbai’s real estate market soared in 2024 with 96,000+ residential units sold
Mumbai’s real estate market has witnessed a remarkable surge in 2024, achieving record-breaking performance levels across both the residential and office space sectors. According to Knight Frank India’s mid-year report, the city sold 96,187 residential units, marking an unprecedented 13-year high and an 11% year-on-year increase. This boom was particularly pronounced in the second half of the year, which saw 48,928 units sold. The festive season, coupled with the introduction of new projects, played a pivotal role in stimulating demand. In response, developers launched 96,470 new residential units, the highest level of new supply since 2014, while average residential prices increased by 5%.
Peripheral areas such as Thane and the Central Suburbs dominated both the launches and sales, drawing buyers with competitive pricing and enhanced amenities. While properties priced below Rs 5 million remained the most popular, a noticeable shift towards higher price brackets was observed. Sales in the Rs 10–20 million segment rose to 20%, compared to 17% in 2023. Additionally, the Rs 20–50 million segment saw a growth from 6% to 10%, with premium properties seeing impressive sales figures. Notably, the ultra-luxury segment priced above Rs 500 million experienced a significant downturn, with a 60% decline in sales.
The remarkable performance of Mumbai’s residential market is underpinned by a combination of factors, including strong demand for premium housing and transformative infrastructure projects. Gulam Zia, Senior Executive Director at Knight Frank India, highlighted several key initiatives driving this growth, such as the Mumbai Coastal Road, Metro Line 3, and the Mumbai Trans Harbour Link. These projects have not only enhanced the city’s connectivity but also significantly boosted its appeal as a prime location for real estate investment. This infrastructure-driven growth has made it increasingly attractive to buyers across all segments of the market.
On the commercial real estate front, Mumbai’s office leasing market has also recorded its highest performance in over a decade. The city achieved a 40% year-on-year increase in leasing activity, with transactions reaching 10.4 million square feet. India-facing businesses have been the dominant players in this growth, accounting for 77% of the total leasing transactions. With the supply of new office space increasing by 89% to 5.8 million square feet, Mumbai’s office market is seeing a robust surge in demand. Improved metro connectivity, particularly the BKC metro line, has played a crucial role in enhancing accessibility and attracting more occupiers. Office rents have risen by 3.5%, reaching an average transacted rent of Rs 118 per square foot per month.
From a sustainability perspective, Mumbai’s real estate market is increasingly aligning with eco-friendly development principles. Developers are incorporating energy-efficient technologies, sustainable building practices, and green certifications into both residential and commercial projects. This focus on sustainability is not only beneficial for the environment but also for investors, as eco-conscious buildings are seen as more attractive and future-proof in the long run. Moreover, with infrastructure projects like the Coastal Road and Trans Harbour Link focusing on enhancing environmental sustainability, Mumbai’s real estate market is on track to balance growth with eco-conscious urban development, ensuring that the city’s real estate boom also supports the broader goals of sustainable development.
