According to a report released by property consultants Knight and Frank, Mumbai recorded 11,504 property registrations in April 2024.
With property registrations increasing by 16% in revenue to the exchequer and the state government maintaining the status quo on ready reckoner rates, real estate developers in the Mumbai Metropolitan Region (MMR) predict strong growth in the sector. They are optimistic about larger purchases in areas where connectivity has been resolved through the implementation of infrastructure projects such as the expansion of Mumbai Metro, Mumbai Trans Harbour Link (MTHL), Coastal Road, and others.
Prashant Sharma, President of the National Real Estate Development Council (NAREDCO) Maharashtra, stated, “We are optimistic about the future of the real estate sector in MMR.” Our projections show a strong growth trajectory, driven by several key factors. First, the rising demand for residential properties, particularly in the affordable and mid-segment markets, is a good sign. We also see a resurgence in commercial real estate, fueled by the expanding IT and finance industries.”
“Moreover, government initiatives such as the relaxation of FDI regulations and the emphasis on infrastructure development, including the expansion of the Mumbai Metro, Coastal Road, and several other projects, making real estate investments even more appealing. We are also aware of the challenges, which include regulatory hurdles and the need for faster project approvals. However, with the state government’s commitment to improving the ease of doing business and our collaborative efforts to advocate for policy reforms, we are confident that MMR will remain a vibrant and dynamic market for real estate investment,” Sharma concluded.
Manju Yagnik, Vice Chairperson of the Nahar Group and Senior Vice President of NAREDCO, Maharashtra, stated, “The residential real estate segment has demonstrated resilience, making it an appealing investment option for those with medium to low-risk tolerance. Despite numerous challenges, this industry has remained, emerging as an excellent choice for many investors. The higher initial cost of commercial properties frequently attracts investors to the residential segment. The higher initial cost of commercial properties frequently attracts investors to the residential segment. For people with limited funds and maintenance skills, residential real estate is a more accessible and practical option.
Nitin Singhal, the co-founder of PropFina, stated, “With most micro markets experiencing higher supply than ever before, there will be corrections by highly leveraged players.” Those who have financially engineered their project portfolios and maintain control over their brand will have the least impact. Corrections can range from 10-15% and will be specific to micromarket dynamics. There could be higher offtake in areas where connectivity issues are being resolved.
Commercial and warehousing sectors are on the rise as real estate trends.
Singhal said that affordable housing will largely remain the same, and “When it comes to the commercial segment, which includes retail and office spaces, lease rates are going up and vacancies are going down. Introducing small and medium real estate investment trusts (SM REITs) creates a significant secondary market absorption opportunity. “This segment may experience a northwards moment,” he said.
“Similarly, major warehousing players are quickly acquiring the land parcels, some of which are backed by sovereign funds seeking safe havens with higher-than-inflation returns.” Clear title land parcels ranging from 50 to 100 acres will see a rise in pricing, particularly along Samruddhi Mahamag exits, DMIC Virar-Alibag Multi-Modal Corridor (VAMMC), and so on. Singhal concluded that there will be a new segment of multi-level last-mile connectivity warehousing.
April 2024 Trends and Consumer Preferences
According to a report released by property consultants Knight and Frank, Mumbai recorded 11,504 property registrations in April 2024, contributing more than INR 1,043 crore to the state exchequer. According to the Maharashtra Department of Stamps and Registrations, in April 2024, there was an increase in registration of apartments measuring up to 500 square feet, accounting for 45% of all registrations. Of all the properties registered, nearly 86% of the Western suburb buyers and 92% of Central suburb consumers choose to buy within their micro market. This decision is influenced by the familiarity of the area and the availability of products that match their pricing and feature preferences.