The Mumbai Metropolitan Region (MMR) continues to lead India’s residential real estate market, with housing prices showing a 4 percent year-on-year (YoY) growth in Q3 2024, according to the Housing Price Tracker report published by Credai-Colliers-Lease. Foras.
Panvel recorded the highest growth in MMR at 12 percent YoY, followed by Thane and Mumbai city, seeing an 11 percent growth each.
The completion of Phase 1 of Metro Line 3 and the anticipated Phase 2 of the Coastal Road project are expected to further push residential prices, especially in the western suburbs.
Demand for larger houses, especially 2-3 BHK units, has contributed to 3-4 per cent annual price growth for these areas. Home buyers are prioritizing location, reflecting preferences that have evolved since the pandemic.
Despite high demand, around 27 per cent of MMR’s sold inventory is 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 Association of India (CREDAI), cited the continued rise in real estate prices as a reflection of strong homebuyer sentiment. “The real estate market remains favorable for growth, with more ambitious home buyers looking for more expensive homes. This trend is in line with current market dynamics and evolving consumer preferences,” he said.
Across India’s top eight real estate markets, the average house price increased by 11 percent year-on-year to Rs 11,000 per sq ft during Q3 2024.
Delhi-NCR led with 32% YoY growth, followed by Bengaluru at 24%.
MMR maintained its position at the forefront of housing price trends. This is the 15th consecutive quarter that house prices have increased since 2021, underscoring continued demand and positive market sentiment.
“The average price of MMR housing units increased by 4% in FY24 despite favorable economic conditions. Strong underlying demand is evident in this expansion, driven by the region’s emergence as a financial powerhouse and the rapid development of facilities such as Navi Mumbai International Airport,” said Ram Naik, director and co-founder, The Guardian Real Estate Advisors.
Unsold inventory in major cities saw its third consecutive quarterly decline, reaching 1 million units by the end of September 2024.
MMR holds about 40% of this inventory, highlighting its dominant share in the market. As 2024 enters its final quarter, experts expect a healthy close to the year driven by stable demand and infrastructure developments in MMR and other key markets.