Surge in Home Buying in Mumbai Region Despite Rising Prices

None

In a surprising turn of events, the Mumbai Metropolitan Region (MMR) has been experiencing a robust increase in home buying activity, as per the latest research by ANAROCK property consultants. This comes even as property prices in the area continue to climb, defying the odds against the backdrop of economic predictions.

The residential real estate market within MMR not only dominates in terms of demand but also in supply, with an unprecedented number of new launches, around 1.57 lakh units in 2023, and sales nearing 1.53 lakh units. These figures mark the highest levels recorded, showcasing a clear upward trajectory since 2020. The year 2023 alone saw new launches and housing sales surge by 27 percent and 40 percent annually, compared to the numbers in 2022.

Property prices in MMR have seen a 15 percent rise, moving from approximately ₹11,890 per sq. ft. in 2022 to about ₹13,700 per sq. ft. in 2023. Mumbai, at the heart of MMR, recorded the highest year-on-year increase in housing sales compared to 2022, with the peripheral western suburbs experiencing an 82 percent boom in sales.

Several factors contribute to this unexpected housing boom in MMR, including a strong economic outlook, rapid infrastructure development, fear of missing out (FOMO), and a broad spectrum of options in an evolving market. MMR's role as India's financial and commercial hub continues to attract a vast talent pool, thereby significantly driving the demand for housing in the region. Government initiatives aimed at infrastructure development, such as new highways, metro lines, and significant projects like the Navi Mumbai International Airport and the Mumbai Coastal Road Project, have been pivotal in improving connectivity and overall quality of life. This has encouraged investment in micro-markets poised for future growth due to these infrastructural developments.

The consistent appreciation of property prices in MMR has also instigated a FOMO among buyers, compelling them to enter the market despite the high property prices. The ANAROCK study further reveals that real estate in MMR has historically been a high-yield investment, offering a hedge against inflation and a source of stable rental income.

With the market undergoing constant transformations, MMR offers a diverse range of property options, catering to various budgets and lifestyles. From affordable apartments to luxury high-rises, the region continues to meet the eclectic needs of today's homebuyers, driving the ongoing housing boom in MMR.