Mumbai Metropolitan Region housing prices record steady rise amid infra boost

The launch of Metro Line 3 complete Phase 1 and the anticipated Phase 2 of the Coastal Road Project are expected to further push residential prices, especially in the Western suburbs.

The demand for larger homes, particularly 2-3 BHK units, has contributed to a 3-4 per cent YoY price rise for these segments. Homebuyers are increasingly prioritising space, reflecting evolving preferences after the pandemic.

Despite the higher demand, about 27 per cent of MMR’s unsold inventory remains concentrated in the central suburbs extended micro-market, with 48 per cent of these units in the affordable segment.

Boman Irani, president of the Confederation of Real Estate Developers’ Associations of India (CREDAI), noted the ongoing rise in housing prices as a reflection of strong homebuyer sentiments. “The real estate market remains conducive for growth, with more aspirational home buyers seeking expensive homes. This trend aligns with current market dynamics and evolving consumer preferences,” he said.

Across India’s top eight real estate markets, average housing prices rose 11 per cent YoY to Rs 11,000 per sq. ft. during Q3 2024.
Delhi-NCR led with a 32% YoY increase, followed by Bengaluru at 24%.

MMR maintained its position at the forefront of residential price trends. This marks the 15th consecutive quarter of rising housing prices since 2021, underlining sustained demand and positive market sentiment.

“The average value of MMR housing units rose by 4% in FY24 despite unfavourable economic conditions. Strong underlying demand is evident in this expansion, which is being driven by the region’s standing as a financial powerhouse and the quick development of facilities like the Navi Mumbai International Airport,” said Ram Naik, director and co-founder of The Guardians Real Estate Advisory.

Unsold inventory across major cities saw a quarterly drop for the third consecutive time, reaching over 10 lakh units at the end of September 2024.

MMR accounted for nearly 40% of this inventory, highlighting its dominant share in the market. As 2024 enters its final quarter, experts anticipate a healthy close to the year, driven by steady demand and infrastructure advancements in the MMR and other key markets.