Mumbai (Maharashtra) [India], August 29 : Mumbai's residential market is projected to surpass the remarkable milestone of Rs 2 lakh crore in residential sales value by 2030, real estate and investment management company JLL anticipated in a report.
Mumbai continues to attract substantial real estate investments, as the city's residential sales value in 2023 breached Rs 1 lakh crore and is expected to surpass Rs 1.35 lakh crore in 2024.
Citing the reason behind the continued growth, the report added that the development of projects such as Mumbai Trans Harbour Link (MTHL), Navi Mumbai Suburban Rail, and various Metro lines, have significantly improved the city's connectivity with the suburbs and the sister cities of Thane and Navi Mumbai.
The initiation of transit infrastructure networks has propelled growth in these areas, the JLL reported.
By 2030, the ongoing infrastructure projects aiming to enhance multimodal connectivity are expected to foster new residential hubs and revitalize existing ones, the report said.
These development projects will enhance accessibility contributing to an uptick in residential launches and sales, particularly in Navi Mumbai, Thane, and Western Suburbs II, the report said.
As per the report, the Months To Sell (MTS) inventory decreased from 58 months in March 2022 to 31 months in June 2024.
Going further, the report noted that Mumbai's real estate development has shifted from the southern parts to the north and east suburbs due to increased demand for housing, improved connectivity, and available land,
The city has also witnessed the entry of notable national and regional developers, who have chosen Mumbai as the launchpad for their residential projects, it said.
Developers in Mumbai have successfully acquired a sprawling 260 acres of land (since 2022) through outright purchase or joint development agreements, all earmarked for residential development. This substantial land acquisition equates to an immense development potential of 42-48 million sq. ft, with an estimated sales potential of over Rs 70,000 crore, the report mentioned.
Mumbai's residential real estate market has experienced a significant boost over the last few years, due to the effective implementation of the Maharashtra Real Estate Regulatory Authority (MahaRERA), it said.
Post the pandemic, the market saw a remarkable recovery in both sales volumes and new project launches, reaching unprecedented heights in 2022, the report added.
It further added that the s positive trend sustained in 2023, marking another milestone in the city's residential asset class.
In the first half of 2024, Mumbai's residential market achieved its highest-ever sales over a six-month period, already reaching around 57 per cent of the total sales recorded in 2023.
As a result, Mumbai's contribution to India's overall residential market activity has grown substantially, accounting for approximately 25 per cent of new project launches and 22 per cent of total sales from 2022 to the first half of 2024.
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