Amidst a robust uptick in Mumbai’s housing registrations, the city’s real estate market has garnered significant attention from investors and analysts alike. According to recent data, June witnessed a notable 13% year-on-year increase in housing unit registrations, totaling 11,673 units with a combined value of Rs 16,900 crore, marking an 18% rise in value compared to the previous year.
Year-to-date figures for 2024 reveal a promising growth trajectory, with 72,492 units registered, translating to a 16% increase in units and Rs 97,900 crore in sales value, reflecting a 5% year-on-year rise. Analysts from Nuvama Institutional Equities attribute this buoyancy to expectations of impending interest rate reductions by the Reserve Bank of India (RBI), which are anticipated to bolster Mumbai’s real estate sales further.
“With the RBI holding off on rate hikes, we foresee improved sales prospects for Mumbai’s realty sector moving forward,” stated an expert. This optimistic outlook is reinforced by expectations of enhanced business development initiatives, increased project launches fueled by improved cash flows, and stabilizing interest rates, which are likely to benefit local developers such as Macrotech Developers (Lodha), Oberoi Realty, Godrej Properties, Sunteck Realty, and others. The demographic distribution of June’s registrations reveals that 91% of properties were concentrated in the western and central suburbs of Mumbai, with 49% and 42% share respectively. South Mumbai contributed 7% of registrations, while Central Mumbai accounted for the remaining 2%. In terms of property preferences, homes ranging from 500 to 1,000 square feet emerged as the most sought-after category, comprising 46% of total registrations. Apartments under 500 square feet constituted 36% of registrations, while those between 500 and 1,000 square feet made up 18%. Analysts emphasize that factors such as rising wages, expanding employment opportunities, and the resumption of office-based work are likely to sustain the momentum in homebuying activities across Mumbai.
