Mumbai’s real estate market has shown remarkable growth in 2024, with property registrations in the city rising 12 per cent year-on-year to close 1 lakh deals from January to September this year.
According to data from Knight Frank India, the Mumbai municipal region recorded 1,05,664 property registrations during this period, up from 94,309 units in the same period last year.
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Key Highlights:
– More than 105,664 properties registered in the first nine months of 2024, an increase of 12 percent year-on-year (YoY).
– State revenue from property sales registrations reached ~8,892 crore, up 6 percent year-on-year.
– Residential units constituted 80 percent of total registrations in September 2024.
Market dynamics
The sustained momentum in real estate transactions is attributed to growing economic prosperity and a growing preference for home ownership among Mumbai residents.
Shishir Baijal, Chairman and CEO, Knight Frank India, said: “Mumbai’s residential market has maintained strong momentum into 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 high-value properties. In September 2024:
– Properties priced at Rs 2 million or more accounted for 23 per cent of registrations, up from 18 per cent in September 2023.
– The proportion of properties valued below Rs 50 lakh fell from 28 per cent to 17 per cent.
Preference for larger spaces.
The data also reveals a shift toward larger living spaces:
– Apartments between 500 and 1,000 square feet accounted for 52 percent of all property records.
– The share of apartments 1,000 square feet or larger increased from 19 percent in 2023 to 22 percent in 2024.
Geographic trends
The western and central suburbs continue to dominate the market, accounting for 83 per cent of total registrations. Interestingly, South Mumbai saw an increase in its market share, rising from 7 percent in September 2023 to 10 percent in September 2024.
September slowdown
Despite the overall positive trend, an increase of 14 percent was recorded in September 2024.
Enrollments declined year-on-year, and revenue fell 21 percent year-on-year to Rs 892 million. This drop is largely attributed to the unfavorable ‘shraadh’ period, which lasted for 12 days in September 2024.
“We expect this trend to persist, especially with the festive season approaching and the anticipation of an interest rate cut by the RBI in the upcoming monetary policy review. This expectation is further supported by the recent 50 bp rate cut by the Federal Reserve, which has been followed by other countries, fueling optimism over a similar move in India,” said Akhil Saraf, Founder and Director executive of the proptech technology company Reloy.
First published: October 2, 2024 | 16:55 IS
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