Mumbai sees office market growth at 2.8 msf, highest housing sales in Q1'24: Report

April 04, 2024: Mumbai registered office space transactions of 2.8 million square foot (msf) during the first quarter of 2024 (Q1 2024), marking a 29% year-on-year (YoY) increase, according to the latest report by Knight Frank India. Additionally, office completions in Mumbai surged by 986% to reach 0.4 msf during the quarter. The residential market saw a total sales volume of 23,743 with a 17% YoY growth, the report India Real Estate: Residential and Office for January-March 2024 (Q1 2024) stated.

During Q1 2024, the major occupancy/leasing activity was driven by India Facing Businesses with 88% attribution. Flex office areas accounted over 9% share and 3% was occupied by third party IT services.

Mumbai’s residential market witnesses highest sales in Q1 2024

The report highlighted that the residential market of Mumbai saw the highest sales at 23,743 units across the eight Indian cities during Q1 2024. Over 25,263 units were launched in Mumbai during the same period. The average weighted residential price witnessed an increase of 6% YoY during Q1 2024 with a value of Rs 7,891 sq ft, the report said. During the quarter, Mumbai observed a commendable growth of 259% in the ticket size category of above Rs 10 mn. A total of 7,401 units were sold in this segment. For the ticket size under Rs 5 mn category, 10,527 units were sold, showcasing 13% YoY growth.

Shishir Baijal, chairman & managing director, Knight Frank India, said “The real estate market experienced another exceptional period characterised by robust performances in both the office and residential sectors. The residential segment particularly witnessed a significant surge, propelled by continued growth in sales in the higher price category of Rs 1 Crore and above. This not only demonstrates a strong demand trajectory but also reflects buyers’ confidence in making long-term commitments. Concurrently, the office sector maintained its upward trajectory, delivering one of the most impressive quarterly demand performances to date. The country’s economic stability has spurred businesses operating in India to expand their operations, consequently driving demand for office spaces. Additionally, many companies are now reverting to conventional office setups, either reducing or discontinuing their work-from-home policies, further boosting demand. We anticipate these activities to continue at a robust pace in the foreseeable future backed by the stable economic policies and favourable domestic conditions.”

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Harini Balasubramanian

Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.