According to a Knight Frank India analysis, the residential real estate market in Mumbai saw an 11% increase in property sales in 2024, particularly luxury residences in the Rs 5 to Rs 10 crore and Rs 20 to Rs 50 crore price range.
In 2024, 96,187 housing units were sold overall, an 11% increase over 2023’s 86,871 units. According to the research, developers prioritised the Rs 5 to 10 crore and Rs 20 to 50 crore ranges for launches, which reflected sales trends and the desire for luxury homes.
“The ongoing need for high-end housing and revolutionary infrastructure improvements are driving Mumbai’s residential market’s consistent rise. Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure and Valuation, Knight Frank India, stated that important infrastructure projects like the Mumbai Coastal Road and Metro Lines have significantly increased connectivity, which has increased demand in suburban areas.
In 2024, the city saw a 143% increase in sales in the Rs 20–50 crore range. Sales of homes in the Rs 10–20 crore range more than doubled in 2024, reaching 360 units in the previous year.
According to the survey, the percentage of homes priced between Rs 1-2 crore increased to 20% in 2024 from 17% in 2023, while the percentage of housing units priced between Rs 2-5 crore increased from 6% in 2023 to 10% in 2024. Mumbai has the highest residential sales of homes valued between Rs 20 and Rs 50 crore out of all eight cities in the nation.
The ticket size sector of Rs 20-50 crore saw the largest percentage rise in the city’s residential market, growing 143% year over year to 192 units in 2024 from 79 units in 2023, according to the report. According to the report, sales of Rs 5–10 crore increased by 112% year over year to 1,866 units, while sales of ₹10–20 crore increased by 68% year over year to 360 units in 2024.
The price group above Rs 50 crore saw the biggest drop, falling from 255 units in 2023 to 101 units in 2024, or 60%.
According to Vivek Rathi, head of research at Knight Frank, there was a significant supply of larger ticket sizes in 2024, even as sales in the Rs 1-2 crore market increased on average. The sentiments of the homebuyers for larger residences and luxurious spaces in the Rs 20–50 crore range and higher were also complimented by this.
First-time homebuyers make up the majority of HNI purchasers. The majority of the investment in this area was in under-construction projects, with only a minor percentage (about 5-7%) going towards renovation projects, he noted.
Bollywood superstars made up 10% or less of this market, whereas CXOs and promoters make up the majority of customers.
Regarding locations, we saw transactions occurring in the southern and central regions of Mumbai, such as Malabar Hill, Worli, and Mahalaxmi Layout. Additionally, we observed a few transactions from the suburban areas of Dombivili, Kurla, and Virar,” Rathi continued.
According to the survey, home costs in Mumbai increased by 5% annually. The city’s weighted average cost of a residential unit was Rs 8,277 per square foot. “Out of the eight cities in the nation, this one also has the highest weighted average price. The biggest residential price increases in the Central Mumbai and South Mumbai micro-markets were 8% and 7%, respectively, according to the report.
Worli saw an 8% YoY price increase, from Rs 70,153 to 91,227 per square foot, while Lower Parel saw a 6% price increase, from Rs 33,665 to 37,143 per square foot. Prices in other areas, like Andheri and Bandra(W), increased by almost 1%, from Rs 23,338 to 24,654 per square foot and from Rs 72,799 to 82,542 per square foot, respectively.
Both Khargar and Mira Road saw significant price increases of 5%, rising to Rs 9,495–10,997 per square foot and Rs 11,697–12,966 per square foot, respectively.
Source: Hindustan Times
