Real Estate Review: How Did Mumbai’s Residential Market Fare in Q2 of FY 2024-25

By Lodha

Mumbai is the city where millions flock to fulfil their dreams and aspirations. However, the city is more than just a cinematic backdrop--it is a thriving market for various industries and sectors. The city’s real estate sector is often talked about and can serve as a good indicator of how the property market in the country is faring. As we enter Q3 of FY 2024-25, here is a quick review of how Mumbai’s real estate market fared in the second quarter of the financial year.

An Update on Mumbai’s Residential Real Estate Market in Q2 FY 2024-25

In the second quarter of the financial year 2024-2025, the residential market in Mumbai witnessed significant growth. The city has set new records in the real estate sector and has established itself as one of the most resilient markets in the country. In Q2 of FY25-25, the real estate market in Mumbai has thrived. The highest sales volume in the city reached 24,222 units, setting a new market record. Not only has the city maintained its consistent growth trend, but it has also shown a 9% increase year-over-year in Q3 of 2024 and a 13% increase year-to-date. Factors like high demand, premium property launches, and a growing preference for larger homes have helped the city dominate the real estate market in India. The growth in Mumbai’s property market has also been favoured due to the economic climate in India, rising disposable income and an urgency amongst investors to purchase property when prices are stable.

In Q2 of FY24-25, homebuyers in Mumbai actively sought out and purchased properties across different ticket sizes. Around 10,000+ units, priced under Rs 5 million, were sold in the quarter, making up almost 42% of sales. Similarly, buyers who fall within the Rs 5 million and 10 million segment drove a 10% year-on-year growth that contributed around 24% to the city’s total real estate sales. In the premium segment, buyers upped sales by 16% year-on-year and increased transactions from 7000+ units in Q3 2023 to 8153 units in Q3 2024.

The Mumbai Metropolitan Region (MMR) led India’s housing inventory with around 1.9 lakh units. It marked a 1% increase from the previous quarter. The MMR also witnessed the launch of approximately 44,120 new units, showcasing a 31% rise from Q1 2024 and a 2% year-on-year rise with more than 64% of fresh supply in the less than 80 lakh segments. Prices for units also grew by 4% year-on-year, and the MMR area’s residential market is likely to perform well during the rest of FY 2024-25, thanks to economic conditions and the completion of key infrastructure projects.

To keep up with rising demands, around 29,000+ new units were launched in the MMR during Q3 of 2024. The rating agency ICRA announced that it anticipates a year-on-year growth of 8-9% in the area sold in MMR during FY 2024-25. The growth is expected to be built on a foundation of end-user demand and affordable prices.

As Mumbai transforms, with key infrastructure projects enhancing connectivity and boosting the local economy, the real estate landscape looks promising. From the Mumbai Trans Harbour Link, Coastal Road, and Metro Aqua Line 3 to the Navi Mumbai International Airport, Versova Bandra Sea Link, and the Mumbai-Ahmedabad Bullet Train, Mumbai is on the highway to improving residents’ quality of life.

At Lodha, one of the top real estate developers in Mumbai, we have always believed in staying ahead of the curve and anticipating our clients’ needs. We ensure that we build developments in Mumbai that allows residents to make the most of everything the city has to offer – they are well-connected, secure, and impeccably constructed. If you want to invest in a flat in Mumbai and invest in the city’s thriving real estate market, Lodha can help you curate your portfolio and build a beautiful life.