Mumbai’s Residential Real Estate Market Sees 11% Growth In 2024, Sales Total Rs 1.6 Lakh Crore

The Mumbai real estate market experienced a remarkable 11% growth in 2024, with residential sales reaching a total value of Rs 1.6 lakh crore. According to data from the Inspector General of Registration (IGR), a total of 1,41,302 homes were sold in the city, generating Rs 12,161 crore in stamp duty revenue for the Maharashtra government.

Consistent Growth Despite Fluctuations

While September saw a dip in sales to 9,111 homes, generating Rs 876 crore in revenue, every other month in 2024 surpassed the 10,000-home mark. December alone recorded the sale of 12,193 homes, contributing Rs 1,116 crore in stamp duty. March saw the highest sales of the year, with 14,149 homes sold, yielding Rs 1,122 crore in stamp duty.

Surge in Property Prices and Demand for Larger Homes

In addition to the rise in home sales, property prices also experienced significant growth. The average property price per square foot in 2024 surged to Rs 14,200, up nearly 49% from Rs 9,500 per square foot in 2019.

Larger homes gained popularity in 2024, with the share of sales for apartments between 1,000 and 2,000 sq ft increasing from 8% to 12% compared to 2023. Homes larger than 2,000 sq ft maintained a steady 2% share. On the other hand, compact homes under 500 sq ft saw a sharp decline in demand, with their share dropping from 51% to 35%.

Suburban areas dominated the Mumbai housing market, contributing to 86% of total sales. In contrast, Mumbai city sales remained stagnant at just 7%, primarily due to high property prices in prime localities, which have made them unaffordable for most buyers.

The surge in home sales can be attributed to the post-pandemic rise in homeownership aspirations, with many people opting for larger homes and suburban properties. Tanuj Shori, founder and CEO of Square Yards, explained, “The Indian residential real estate market has entered a promising upcycle post-pandemic, driven by pent-up demand and a stronger sentiment for homeownership. Over the past two to three years, the sector has experienced exceptional growth, which has naturally moderated in 2024.”

 

Mumbai real estate

Outlook for 2025: Continued Growth in Demand and Supply

With rising property values and a sustained demand for larger homes, Mumbai’s real estate sector is expected to continue on an upward trajectory. “In 2025, we foresee residential demand and supply growing in close ranges, setting the stage for steady, sustainable progress,” Shori added.