by THO
Mumbai’s infrastructure projects, including the Mumbai Trans Harbour Link (MTHL), Navi Mumbai Suburban Rail, and various Metro lines, have improved its connectivity with the suburbs and the sister cities of Thane and Navi Mumbai. This enhanced accessibility has directly contributed to an uptick in residential launches and sales, particularly in Navi Mumbai, Thane, and Western Suburbs II so much so that the housing sales value in 2023 breached the ₹1 lakh crore and is expected to surpass ₹1.35 lakh crore in 2024.
Infrastructure initiatives planned by 2030, are expected to reduce the average travel time within the city by 50%, promote residential sector growth as well reduce the pressure on existing modes of public transportation. These projections are expected to surpass ₹2 lakh crore mark by 2030, according to a JLL report launched at NAREDCO’s flagship event, The Real Estate Forum (TREF) 2024 held in Mumbai.
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Mumbai includes Mumbai city, Mumbai suburbs, Thane city and Navi Mumbai. Residential sales value is estimated based on the primary market.
JLL’s report, ‘Mumbai Residential Market-Through the Lens of Time,’ noted that as of June 2024, Mumbai stands as one of the leading contributors to pan-India launches and sales. Residential sales value in 2023 breached ₹1 lakh crore and is expected to surpass ₹1.35 lakh crore in 2024, setting a record high for the city.
In the first half of 2024, Mumbai’s residential market achieved its highest-ever sales over a six-month period, already reaching around 57% of the total sales recorded in 2023. As a result, Mumbai’s contribution to India’s overall residential market activity has grown substantially, accounting for approximately 25% of new project launches and 22% of total sales from 2022 to H1 2024, the report noted.
The residential sales value during this period exceeded ₹2.8 lakh crore. While completion of prominent infrastructure projects like the Mumbai Trans Harbour Link and Navi Mumbai Metro Line 1, have enhanced Navi Mumbai’s prominence as a residential hub, Western Suburbs II has benefited significantly from Metro lines 7 and 2A, thereby emerging as one of the residential hotspots for new launches and sales, it said.
Additionally, the Months To Sell (MTS) inventory decreased from 58 months in March 2022 to 31 months in June 2024. By 2030, the ongoing infrastructure projects aiming to enhance multimodal connectivity are expected to foster new residential hubs and revitalize existing ones.
“Mumbai’s real estate development started in the south and shifted to the suburban markets in north and east by 2016. City’s significant focus on multi-modal means of transport by mid- 2024 created further boost and resulted in growth of new areas and regeneration of the existing core city locations. Infrastructure initiatives planned by 2030, are expected to reduce the average travel time within the city by 50%, promote residential sector growth as well reduce the pressure on existing modes of public transportation,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Prashant Sharma, president, NAREDCO Maharashtra, said that “As infrastructure projects continue to enhance connectivity and create new residential hubs, we foresee Mumbai’s market not only maintaining its momentum but also setting new benchmarks in the coming years.”
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“As of June 2024, Mumbai stands as one of the leading contributors to pan India launches and sales. It is also the largest residential market in terms of sales value which is expected to surpass ₹1.35 lakh crore in 2024 – a record high for the city. Planned infrastructure expansions have encouraged developers to acquire a total of more than 260 acres of land (since 2022) within the city limits and its peripherals for future residential developments, thereby paving the way for MMR’s expansion,” said Karan Singh Sodi, Senior Managing Director – Mumbai MMR & Gujarat, and Head Alternatives, India, JLL
Mumbai developers on a land acquisition spree
Developers in Mumbai have acquired almost 260 acres of land (since 2022) through outright purchase or joint development agreements, all earmarked for residential development. This substantial land acquisition equates to an immense development potential of 42-48 million sq. ft, with an estimated sales potential of over ₹70,000 crore.
The city has also witnessed the entry of notable national and regional developers, who have chosen Mumbai as launchpad for their residential projects. Moving forward, JLL anticipates a consistent and healthy momentum in residential sales, albeit with a moderation in capital value appreciation. Looking ahead to the future, the Mumbai market is projected to surpass the remarkable milestone of ₹2 lakh crore in residential sales value by 2030, the report added.
Mumbai’s real estate developments shift from south to north and east suburbs
Mumbai’s real estate development has shifted from the southern parts to the north and east suburbs due to increased demand for housing, improved connectivity, and available land.
The initiation of transit infrastructure networks has further propelled growth in these areas. Navi Mumbai and Thane have emerged as popular residential destinations, supported by infrastructure improvements and connectivity. The city offers a wide range of residential opportunities across different price segments, with attractive returns. While redevelopment is a key strategy in core city areas, infrastructure developments like the Coastal Road and Metro expansions present opportunities across both the Island City and suburbs, the report added.
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