The residential real estate market in Mumbai is likely to cross Rs 2 lakh crore in sales value by 2030. According to a report by JLL, a real estate and investment management company. This indicates the continuous allure and growth that this city has shown in the residential sector.
2023 was a great year for the residential market of the city, where the sales value crossed Rs 1 lakh crore. The market is expected to surpass Rs 1.35 lakh crore in 2024, primarily due to significant infrastructural development.
The JLL report attributes this growth to the ongoing MTHL, Navi Mumbai Suburban Rail. And various Metro line projects.These projects have immensely enhanced connectivity between Mumbai and the suburbs, Thane, and Navi Mumbai. As a result, the growth in their transit infrastructure network has thrown up development in these areas.
The infrastructural upgrade will facilitate newer residential destinations and redevelopment of existing ones by 2030, states the report. The ongoing projects are set to improve accessibility, which will drive new launches. And sales in these areas, particularly in Navi Mumbai, Thane, and Western Suburbs II.
The report continues with the inventory metrics, reflecting a decrease in inventory recorded by Months To Sell-MTS. More precisely, MTS decreased from 58 months in March 2022 to 31 months in June 2024, thus giving evidence of a more dynamic market with faster sales turnover.
It also reports the shift in the development of real estate from the southern parts to the northern and eastern suburbs of Mumbai. The city also houses premium national and regional developers using Mumbai as a launchpad for their residential projects.
This works out to an area of approximately 42-48 million square feet of significant development potential with sales potential of over Rs 70,000 crore developed since 2022, either through outright purchases or through joint development agreements.
The Mumbai residential real estate market has been showing signs of a strong resurgence over the last couple of years. Largely on the back of good implementation of MahaRERA. Indeed, this market’s post-pandemic recovery has been nothing short of remarkable as both sales volumes. And new project launches reached an all-time high in the calendar year 2022.
This trend continued positively into 2023, marking yet another high milestone for the residential sector in the city. Mumbai attained its highest-ever residential sales for six months in the first half of 2024. The sales during this period have already reached around 57 percent of the total sales recorded in 2023.
Due to this fact, Mumbai has contributed majorly to the overall residential market activity of India. Consequently, the city now contributes to around 25 percent of new launches. And around 22 percent of total sales from 2022 to mid-2024.
In a nutshell, the residential real estate market in Mumbai would further continue its upward trajectory with sustainability in infrastructure development, improvement in land acquisition, and a strong post-pandemic recovery.
ANI
