Mumbai Property Market Soars to New Record in 2024
Mumbai has been considered as India’s largest and most expensive market for a long time. In 2024, it again proved this statement right by achieving its best-ever annual performance in terms of deal registrations as well as stamp duty collection. This strong demand growth is boosted by the stable economic conditions and also persistent confidence among buyers.
In the year 2024, Mumbai hit a record of more than 1,41,000 registrations. It made the year 2024 as the best year for property sales in both primary and secondary markets. It surpassed the previous year’s record by 11 percent.
According to the data of the Inspector General of Registration (IGR) and Controller of Stamps, Maharashtra, the total stamp duty collection increased by 12 percent which accounts to Rs. 12,138 crore.
Significance of Mumbai’s Property market
Mumbai’s real estate market continues to exhibit strong resilience and adaptability with the changing times. The consistent rise in registrations and increasing revenue indicate strong demand. Its robust demand is particularly seen more for premium and spacious houses. These preferences indicate the homebuyers change in preference towards quality and value. The strong performance of Mumbai’s real estate market underlines it as a key driver of economic activity and also an interesting long-term investment opportunity.
The market recorded a consistent rise in property registration at higher value in Mumbai. In the month of December, the property registration for real estates priced at Rs 2 crore and above observed a surge of 23 percent compared to its record of 18 percent in the month of December 2023. The real estate priced under Rs. 50 lakh recorded a fall to 25 percent of share compared to previous share of 30 percent. It indicates a shift in homebuyers preferences towards higher-value real estate segments. A strong inclination is observed towards premium properties with a total purchase of 2,879 properties.
The preference for homes having an area of 1,000-2,000 sq ft. increased rapidly to 12 percent of shares compared to earlier shares accounts to only 8 percent. While, the shares for homes above 2,000 sq ft recorded stable growth of 2 percent. In contrast to this, homes till 500 sq ft recorded a sharp fall in registrations which accounts to 51 percent compared to the previous shares of 35 percent. This change in preference in real-estate area-wise signals an increase in preference for spacious homes.
The real estate developers used this strong sales opportunities to capitalise by launching new supply in the market. It resulted in the launch of 96,470 new units in 2024 making the highest volume launch since 2024. It observed a 4 percent year-on-year growth. While, the average residential prices surge by 5 percent year-on-year surpassing the year 2023. The continued demand for real estate kept the price growth and sales momentum steady.
In the month of December, around 12,363 property registrations contributed Rs. 1,131 crore of the revenue to the state government of Maharashtra.
Reasons for the best performance
The report of Knight Frank India on the India Real Estate- Office and Residential Market (July-December 2024) states that Mumbai is leading in terms of residential sales among all the metro cities.
Mumbai is considered as the financial hub of India with strong economic growth in finance, commerce and industry. It is supported by infrastructural projects such as the Mumbai coastal Road, Mumbai Trans Harbour Link (MTHL) and Metro Line 3.
The development in the urban landscape due to these infrastructural projects undertaken in Mumbai are acting as a significant key in the progress of the property market. The infrastructural projects help in increasing connectivity between the places. It has boosted the demand in real estate as more and more homebuyers are participating to take advantage of this developed connectivity. The strong government’s capex in these projects has supported increased real estate activities, influencing price dynamics and also in new real estate ventures.
The first half-yearly sales of 2024 was the highest half-yearly since 2012. The second half-yearly sales for the year 2024 recorded an increase in sales by 4 percent compared to the first half-yearly sales of 2024. The reasons for robust sales were festive seasons such as Navratri, Dussehra and Diwali. These festivals for years are reasons for the increase in purchases of real estate. Also, it was further boosted by new launches and attractive payment plans surged the sales activity.
Price dynamics in the 2024
Mumbai’s residential properties rates increased by 5 percent. It recorded the highest average price per square foot of Rs. 8,277. It is the highest among the 8 major cities in India. While, Central Mumbai and South Mumbai recorded the highest residential price surged of 8 percent and 7 percent, respectively.
The current property market in Mumbai is in a strong position to take advantage of this situation and keep on sustaining the growth path during the 2025 as well.
The image added is for representation purposes only
