Mumbai Property Update: Explore Residential Prices and Rents in MMR Areas for Q3
Who Bought a Rs.10000000000 Home in Mumbai? You’ll Be Surprised by the Location and Facilities
The Mumbai Metropolitan Region (MMR) continues to hold a key role in the residential real estate market, representing 32% of the total market share in India’s seven leading cities. However, there was a notable decline in new residential projects during the third quarter of 2024. Around 29,600 units were introduced, which is an 18% decrease compared to the same time last year and a 33% drop from the previous quarter.
Property prices in the Mumbai Metropolitan Region saw new launches in Q3 2024.
In the Mumbai Metropolitan Region (MMR), Mumbai has emerged as the leading force in property activity, accounting for 74% of all new launches. Navi Mumbai and Thane followed, contributing 14% and 12% respectively. Within Mumbai, the Peripheral Central Suburbs were the most active micro market, making up 38% of new launches, while the Peripheral Western Suburbs were close behind at 27%. Developers have shown a preference for affordable and mid-range segments, which represented 30% and 28% of new launches in Q3 2024.
The strong demand for affordable and mid-range housing has driven new launches in the MMR during this quarter. Sales in Mumbai, Navi Mumbai, and Thane have remained steady, with the MMR being a significant contributor to national housing transactions, absorbing nearly 36,200 units in Q3 2024. This accounted for 34% of the total sales volume in the country. However, there was a 13% decline from the previous quarter and a 6% year-on-year decrease, indicating a slight slowdown in sales momentum. Mumbai continued to be the focal point for these transactions, contributing an impressive 69% of the region’s total sales volume. Notably, all sub-regions within the MMR—Mumbai, Thane, and Navi Mumbai—showed stable sales trends, maintaining the same shares as the previous quarter.
Among the various micro-markets in Mumbai, the Peripheral Central Suburbs stood out as the most popular area, capturing 39% of the city’s sales volume in Q3 2024. The Peripheral Western Suburbs contributed an additional 22%.
The Mumbai Metropolitan Region (MMR) saw the second-largest quarterly decline in the number of homes available for sale, representing 33% of the total inventory among the top seven cities, which is approximately 1.88 lakh units. This reflects a 3% decrease compared to the previous quarter and a more significant 7% drop year-on-year. The distribution of available inventory remained consistent, with Mumbai holding 75%, Navi Mumbai 14%, and Thane 11%. Within Mumbai, the Peripheral Central Suburbs accounted for 30% of the available units, with nearly 32% of this inventory being in the affordable segment. By the end of Q3 2024, the inventory overhang in the MMR remained stable at 14 months.
As for the outlook for property prices in the Mumbai Metropolitan Region, the residential real estate market is expected to perform strongly as 2024 comes to a close. The positive momentum seen in previous quarters, fueled by favorable economic conditions and an increasing desire for homeownership, is likely to persist. Despite challenges like rising construction costs and stable repo rates, developers are expected to implement competitive pricing strategies during the festive season to tap into the pent-up demand.
