Mr. Piyush Rambhia, Partner at Palladian Partners Advisory Ltd.
The Mumbai Metropolitan Region (MMR) real estate market once again demonstrated its strength and resilience, marking an exceptional fiscal year 2024-25. With record-breaking property registrations, rising revenues, and evolving buyer preferences, the sector remained a key barometer of India's broader real estate health.
Unprecedented Growth in Property Registrations and Revenue
The fiscal year saw an extraordinary surge in property registrations in Mumbai, reaching a 13-year high of 141,202 units in 2024-an 11% increase from the previous year. This remarkable transaction volume translated into substantial revenue for the state, with stamp duty collections soaring to â¹12,141 crore, a notable 12% rise from â¹10,871 crore in 2023. December 2024 stood out with the highest number of registrations at 12,418, reflecting robust year-end buying sentiment and investor confidence.
Price Appreciation and Changing Buyer Preferences
The residential market witnessed a steady 5% price appreciation, reinforcing Mumbai's position as a premium real estate hub. Notably, there was a discernible shift in buyer preferences towards higher-end properties. Registrations for homes priced above â¹2 crore climbed from 18% in December 2023 to 23% in December 2024. Conversely, compact units under 500 sq. ft. saw a decline, with their share dropping from 51% to 35%, indicating a growing demand for more spacious living spaces. The preference for mid-sized apartments (1,000-2,000 sq. ft.) also increased, capturing a 12% share compared to 8% the previous year.
Market Drivers: Infrastructure and Economic Stability
Several factors fueled the sector's growth trajectory. A stable economic environment boosted buyer confidence and disposable incomes, while ambitious infrastructure projects, such as the Mumbai Coastal Road and metro network expansion, enhanced connectivity and attractiveness across key locations. Redevelopment projects in prime areas added to the supply of modern housing options, meeting the demands of a discerning buyer base.
Surge in Sales Volume and New Launches
Mumbai's primary residential sales reached 96,187 units in 2024-an 11% year-on-year increase and the highest in over a decade. Developers responded by launching 96,470 new units, marking a 4% rise from 2023 and the highest number of launches since 2014. While the sub-â¹5 million segment remained significant, there was a notable rise in transactions within the â¹10 million to â¹50 million and above categories, signaling growing investor interest in premium real estate.
Price Trends Across MMR
The weighted average price of residential units in Mumbai grew by 5% year-on-year, reaching â¹8,277 per sq. ft.-the highest among India's top eight cities. Central and South Mumbai led the price appreciation charts, recording increases of 8% and 7%, respectively. This upward trend reflected the enduring demand for premium real estate in well-established locations.
Looking Ahead: A Market Poised for Continued Growth
The momentum in MMR's real estate market was expected to sustain through the coming years, supported by continued end-user demand, policy support, and large-scale infrastructure development. Potential interest rate cuts in the near future could further enhance affordability and fuel market activity. However, macroeconomic fluctuations and policy changes remained key factors to watch.
Conclusion
FY 2024-25 was a landmark period for the MMR real estate sector. Record-high property registrations, strong revenue generation, and a clear shift towards premium housing underscored the market's evolution. With transformative infrastructure projects on the horizon and a robust economic backdrop, MMR was well-positioned to remain a driving force in India's real estate landscape. The sector's adaptability and resilience continued to make it an attractive destination for both investors and end-users alike.
Article By: Mr. Piyush Rambhia, Partner at Palladian Partners Advisory Ltd.
