Mumbai’s residential real estate market is poised for unprecedented growth, with sales value projected to cross the significant threshold of Rs 2 lakh crore by 2030. According to estimates by JLL, a global real estate consultancy and investment management firm, the city’s robust market fundamentals are expected to drive this surge.
In 2023, Mumbai’s residential sales value surpassed Rs 1 lakh crore, and forecasts suggest it will exceed Rs 1.35 lakh crore in 2024. This growth trajectory is largely attributed to ongoing infrastructure developments such as the Mumbai Trans Harbour Link (MTHL), the Navi Mumbai Suburban Rail, and multiple new Metro lines, which have significantly enhanced connectivity between Mumbai and its suburban and satellite regions, including Thane and Navi Mumbai. The initiation of these transit infrastructure projects has sparked growth in the city’s peripheral areas. By 2030, these projects are expected to foster the emergence of new residential hubs and revitalise existing ones, thereby boosting sales and new project launches, particularly in Navi Mumbai, Thane, and the Western Suburbs.
The JLL report also highlights a notable improvement in inventory turnover, with the Months to Sell (MTS) metric reducing sharply from 58 months in March 2022 to 31 months by June 2024. This reduction indicates a faster absorption rate of available residential units, reflecting heightened demand in the market. Furthermore, Mumbai’s real estate development is increasingly shifting from its traditional stronghold in the southern parts of the city towards the northern and eastern suburbs. This shift is driven by rising demand for housing, enhanced connectivity, and the availability of land for new developments.
The city has also attracted significant interest from national and regional developers, who have strategically chosen Mumbai as the launchpad for their residential projects. Since 2022, developers in Mumbai have successfully acquired around 260 acres of land, primarily through outright purchases or joint development agreements, designated for residential development. This land acquisition represents a substantial development potential of 42-48 million square feet, with an estimated sales potential exceeding Rs 70,000 crore. Mumbai’s residential real estate market has seen considerable momentum in recent years, bolstered by the effective implementation of the Maharashtra Real Estate Regulatory Authority (MahaRERA). Following a robust recovery post-pandemic, both sales volumes and new project launches reached new heights in 2022, with this positive trend continuing into 2023.
In the first half of 2024, the city’s residential market achieved its highest-ever sales for a six-month period, already accounting for approximately 57% of the total sales recorded in 2023. Consequently, Mumbai’s share of India’s overall residential market activity has expanded, contributing to around 25% of new project launches and 22% of total sales from 2022 to mid-2024.
