by THO
In the Mumbai real estate market, nearly 80% of the properties registered annually are in the up to ₹2 crore price range, according to the property registration data of Maharashtra government collated by Knight Frank India.
Real estate developers and consultants opine that this amount remains the sweet spot for those planning to buy property in the financial capital. The demand for housing ranges from first-time homebuyers purchasing a 1 BHK apartment to those upgrading to 2 BHK flats in suburban Mumbai.
What does the IGR data suggest?
According to Mumbai’s property registration data, the city registered 1.14 lakh properties in the first 11 months of the calendar year 2023. Out of these 1.14 lakh properties, over 94,000 or over 82% properties were registered in the up to ₹2 crore price range followed by over 12% in the ₹2 crore to ₹5 crore price range, and the balance over 4% in above ₹5 crore price range.
During 2024, 1.28 lakh properties were registered, which is 12% more than in 2023. Out of the total 1.28 lakh property registrations, 1.01 lakh or 78% were in the up to ₹2 crore price range followed by over 15% in ₹2 crore to ₹5 crore range and the balance over 5% in ₹5 crore and above range.
Mumbai’s real estate market is India’s costliest residential market, with apartments available from ₹20,000 per sq ft to more than ₹1.50 lakh per sq ft.
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Why is up to ₹2 crore price the sweet spot for homebuyers?
According to developers catering to homebuyers in the up to ₹2 crore price range, this amount is attractive for their target segment.
“The ₹2 crore range is an attractive home ticket price for many homebuyers in Mumbai. It shows their preference towards well-priced homes, striking a perfect balance between comfort and aspirations,” said Manju Yagnik, vice chairperson, Nahar Group and senior vice president, NAREDCO Maharashtra, an apex body of real estate developers.
“At Nahar Group we are catering to this price range in our Chandivali named Nahar Amaryllis. This segment of homebuyers looks for residential properties that offer amenities and quality construction for investment or personal use within the ₹2 crore budget, primarily in the western and central suburbs of the city,” Nahar added.
According to local brokers in Mumbai, traction remains in the up to ₹2 crore price range despite a rush for luxury apartments.
Also Read: Properties worth ₹50 lakh: Here’s what you can buy in Mumbai and MMR
“In Mumbai areas like Borivali, Dahisar, Kandivali, Mulund, Bhandup, and Vikhroli there are plenty of options for homebuyers with up to ₹2 crore budget. Homebuyers can get a studio apartment for ₹50 to ₹60 lakh, a 1 BHK for ₹1 crore to ₹1.25 crore, and a compact 2 BHK apartment in the price range of ₹1.50 crore to ₹2 crore price range,” said Dhiren Vakil, a real estate consultant in Mumbai’s western suburbs.
“The reason for up to ₹2 crore properties being sold the most is simple. If an individual earns between ₹12 to ₹24 lakh annually, he or she can barely afford a home loan of ₹50 lakh to ₹1 crore. To afford an apartment in the price range of ₹1.50 crore to ₹2 crore, an individual should have saved around ₹50 lakh to ₹1 crore. Therefore, buyers earning between ₹12 lakh to ₹24 lakh may have to do with a studio apartment or 1 BHK in ₹50 lakh to ₹1 crore price range with savings of around ₹20 to ₹30 lakh,” Vakil added.
Projects like Nahar Amaryllis in Chandivali, Ruparel Urbana in Kurla, Godrej Nurture in Bhandup, Arkade Rare in Bhandup, Chandak Greenairy in Borivali, and Raghav Paradise in Borivali all offer apartments up to ₹2 crore among others.
Demand for above ₹2 crore and ₹5 crore properties on the rise
Real estate consultants opine that though apartments priced in the ₹2 crore range remain popular among homebuyers in the Mumbai real estate market, the market share of premium mid-segment and luxury is increasing as evident from Mumbai’s property registration data.
“Mumbai’s property market is witnessing a clear shift towards the premium segment. The share of property transactions priced above ₹2 crore has risen from 17% in 2023 to 21% in 2024. Properties priced below ₹50 lakh saw a decline in their share and the number of transactions. Mid-range and high-value properties have gained momentum, driven by post-pandemic preferences for large and better homes,” Knight Frank India said in its analysis.
This trend highlights Mumbai’s growing appeal as a premium housing market, underpinned by robust overall transaction growth of 12% YoY, signaling sustained confidence in the city’s real estate sector, the analysis added.
Properties priced below ₹50 lakh saw a decline of nearly 10% in property registrations in the first 11 months of 2024 compared to 2023. In 2023, as many as 33,133 properties were registered in Mumbai in the sub- ₹50 lakh price range. This went down to 30,153 properties in the below ₹50 lakh range in 2024, according to the data.
