Mumbai, known as India’s financial capital, is the capital city of the state of Maharashtra. Excellent regional and international connectivity through airports, railways, roadways, ports, and infrastructure developments have attracted many manufacturing and service sector industries and the migrant workforce from all over India, to Mumbai in the past decades.
While most commercial activity is concentrated in Mumbai city, the increasing population, lack of space and consequent high capital values, have seen the growth of residential activity and demand in the peripheral areas of Thane, Navi Mumbai, Kalyan-Dombivli, Vasai-Virar, etc., due to their affordability. These localities are also the part of the Mumbai Metropolitan Region (MMR), which comprises Mumbai City, Mumbai Suburban, Thane, Palghar and Raigad district.
The need of the workforce residing in the neighbouring cities, to commute to the island city has put tremendous pressure on the existing roadways and railways infrastructure. Similarly, the current Chhatrapati Shivaji Maharaj International Airport, which saw an annual passenger traffic of nearly 50 million in 2019, has already reached its annual handling capacity. Moreover, Mumbai is among the top 50 cities globally which will see the most significant increase in population, by 2030.
In view of the increasing population, several major transport infrastructure projects such as the metro rail, the Mumbai Trans Harbour Link and the Versova Vasai Sea Link, have been announced in the recent years to enhance the connectivity within the micro markets across the MMR. A new international airport development is also underway in Navi Mumbai, which has been developed as a secondary business district to decongest the central business districts in Mumbai. Such infrastructure development is opening up the potential of landbanks across the MMR making way for more commercial and residential development in the region. It currently is the largest property market amongst the top cities of India.
While, the Mumbai and its metropolitan region witnessed a pandemic induced lull in the past two years it continue to take the highest share in both supply and demand across the major cities. Residential realty has registered a steady upward trend post dipping to an all-time low during the second wave of the pandemic in Q2 2021. The mellowing of coronavirus cases and relaxation of mask mandates has lent optimism to consumer sentiments as buyers are searching for homes without any hindrances. Moreover, the ongoing festive season, coupled with developer schemes and discounts, is acting as added thrust to the residential demand in the region.
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The latest property market trends in the city suggest the following:
- New supply in Mumbai registered a 32 per cent growth YoY in Q3 2022, with 28,877 units launched. The majority of the new supply was concentrated in the micro-markets such as Thane West, Dombivli, Bhiwandi, Mira Road East and Borivali West.
- Our insights suggest that Bhiwandi, a prominent warehousing and manufacturing hub in the country, has been witnessing heightened residential activity in recent years. The proximity to Thane and Kalyan-Dombivli and relatively affordable prices, along with its proposed alignment with the upcoming multi-corridor Inland Water Transport (IWT) system, has piqued the stakeholder and homebuyer interest in the region.
- On the sales front, Mumbai and its metropolitan region registered a robust growth of 103 per cent, with 28,799 units sold. Currently, the residential demand in the city is at par with the 2015-2016 levels. The city accounted for the highest share of 35 per cent in the overall sales in the top eight cities in Q3 2022. The property registrations, which include both primary and secondary residential sales, also registered a 19 per cent YoY uptick during the July-September 2022 period as per the Department of Registration and Stamps, Government of Maharashtra.
- Most of the demand was concentrated in peripheral locales of Thane West, Dombivli, Panvel, Mira Road East and Virar, together taking a 27 per cent share in the overall sales in Mumbai.
- The properties in the INR 1-3 crore price bracket saw the maximum (29 per cent) traction, with the highest sales in this category taking place in Thane West. 1BHK remained the preferred configuration amongst the homebuyers, with half of the units sold belonging to this configuration.
- Mumbai holds the largest unsold stock of 2.72 lakh units amongst the top eight cities, taking a share of 35 per cent in total residential inventory at the end of the July-September quarter. The unsold inventory registered a 4 per cent YoY increase in Q3 2022. As the sales velocity has picked up, the inventory overhang has declined to 33 months in Q3 2022 from 58 months in the same period the previous year.Check out: Room rent in Mumbai
Renuka Kulkarni, a seasoned real estate professional, brings over five years of diverse experience in research, consulting, and architectural design within the urban sector. Her expertise spans public and private projects, showcasing proficiency in real estate research, trend interpretation, and policy analysis. With qualifications in architecture and a master’s degree in Data Science (Business Intelligence & Data Analytics) from IIIT Bengaluru, along with an M. Tech in Urban Development and Management from TERI School of Advanced Studies, New Delhi, Renuka seamlessly blends data analytics with market insights, offering a holistic understanding of the industry in her research pieces.
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