Mumbai’s Residential Market Set for Unprecedented Growth: Infrastructure, Sales Performance, and Strategic Development Drive Momentum
Mumbai’s residential real estate market is on a path of significant growth, fueled by extensive infrastructure developments, strategic land acquisitions, and a robust sales performance that continues to set new benchmarks. According to JLL’s latest report, “Mumbai Residential Market-Through the Lens of Time,” launched at the National Real Estate Development Council (NAREDCO)’s flagship event, The Real Estate Forum (TREF) 2024, Mumbai is projected to surpass the INR 2 lakh crore mark in residential sales value by 2030, marking a remarkable milestone for the city.
Infrastructure-Driven Growth
The backbone of Mumbai’s real estate boom is its ongoing and planned infrastructure projects, which are transforming the city’s connectivity and accessibility. Major initiatives like the Mumbai Trans Harbour Link (MTHL), Navi Mumbai Suburban Rail, and multiple Metro lines have played a pivotal role in boosting residential launches and sales, particularly in emerging hubs like Navi Mumbai, Thane, and the Western Suburbs. As Dr. Samantak Das, Chief Economist and Head of Research and REIS, India at JLL, explains, “The city’s significant focus on multi-modal transport by mid-2024 has not only spurred the growth of new areas but also revitalized existing core city locations.”
This enhanced connectivity has made previously peripheral areas more attractive to homebuyers, contributing to the increased demand for residential properties across various price segments. As a result, areas like Navi Mumbai and Thane have become key residential destinations, benefiting directly from these infrastructure improvements.
Market Dynamics and Strategic Land Acquisitions
Developers have responded to this surge in demand by making strategic land acquisitions across the city and its suburbs. Since 2022, over 260 acres of land have been acquired through outright purchases and joint development agreements, representing a development potential of 42-48 million sq. ft. This substantial land bank is expected to yield an estimated sales potential of over INR 70,000 crore.
Karan Singh Sodi, Senior Managing Director – Mumbai MMR & Gujarat, and Head Alternatives, India at JLL, emphasized, “Planned infrastructure expansions have encouraged developers to secure vast tracts of land, paving the way for Mumbai Metropolitan Region’s (MMR) expansion. These acquisitions are setting the stage for future residential developments that will continue to drive the market’s growth.”
Sales Performance and Future Projections
Mumbai’s residential sales performance has been equally impressive, with the city accounting for approximately 25% of new launches and 22% of overall sales in India between 2022 and the first half of 2024. The residential sales value during this period exceeded INR 2.8 lakh crore, reflecting Mumbai’s dominance in the national real estate landscape. In 2023 alone, sales value breached INR 1 lakh crore, and it is expected to surpass INR 1.35 lakh crore in 2024—a record high for the city.
Looking ahead, JLL projects that by 2030, Mumbai’s residential market will surpass the INR 2 lakh crore mark in sales value. This growth is underpinned by the city’s strategic infrastructure developments, the ongoing demand for housing, and developers’ confidence in the market’s long-term potential.
Shift in Residential Development
The landscape of Mumbai’s real estate development has shifted over the past few years, moving from the southern parts of the city to the northern and eastern suburbs. This shift is driven by increased demand for housing, the availability of land, and improved connectivity through new infrastructure projects. As Dr. Das noted, “Mumbai’s real estate development started in the south and shifted to the suburban markets by 2016, with infrastructure initiatives by 2024 further boosting the growth of new areas and regenerating existing locations.”
This shift has not only created new residential hubs but has also led to the regeneration of older, established areas within the city, offering a diverse range of residential opportunities across different price segments.
Role of Developers and Market Confidence
The confidence of developers in Mumbai’s real estate market is evident in their large-scale land acquisitions and new project launches. These actions reflect the strong belief in the city’s long-term growth potential, supported by ongoing infrastructure improvements. Mr. Prashant Sharma, President of NAREDCO Maharashtra, remarked, “The robust growth trajectory of Mumbai’s residential real estate market underscores the city’s pivotal role in shaping India’s real estate landscape. The remarkable sales volumes and significant land acquisitions reflect the confidence that both developers and homebuyers have in the city’s future.”
With the ongoing infrastructure developments, Mumbai is not only maintaining its momentum but is also setting new benchmarks in the real estate sector. The city’s market is expected to continue its strong growth trajectory, driven by strategic planning, robust demand, and the creation of new residential hubs.
As Mumbai’s real estate market continues to evolve, the city’s strategic focus on infrastructure and development is set to pay dividends. With continued demand and strategic expansions by developers, Mumbai is well-positioned to remain at the forefront of India’s real estate sector, setting new records and leading the way in residential market growth.
In summary, Mumbai’s residential real estate market is experiencing unprecedented growth, driven by infrastructure development, strategic land acquisitions, and a strong sales performance. As the city moves towards 2030, it is expected to surpass significant milestones, solidifying its position as a key player in India’s real estate landscape.
