Mumbai’s Peripheral Real Estate Market Booms with Over 60,000 Home Transactions in Q1 2024

In the Mumbai Metropolitan Region (MMR), which encompasses the vibrant Mumbai real estate scene, a significant upsurge in residential property transactions marked the first quarter of 2024, with 60,719 deals amounting to Rs 54,239 crore. Based on data sourced from the Maharashtra government and compiled by Square Yards, micro-markets like Thane, Dombivali, Mira Road, Virar, Ulwe, and Kandivali emerged as prime investment destinations for residential properties.

During Q1 2024, Thane West stood out as the top locality for residential transactions, with over 5,000 units sold, valued at more than Rs 4,948 crore. Dombivali East and Mira Road followed closely with 2,985 transactions worth Rs 1,296 crore and 2,848 transactions amounting to Rs 1,752 crore, respectively. Square Yards highlighted Thane’s appeal to new homebuyers and investors due to its diverse property offerings, improved infrastructure, and transportation facilities.

Additionally, the rapid development of social infrastructure further enhanced the allure of these localities. In terms of pricing, properties below Rs 50 lakh constituted the majority of transactions at 51 percent, with properties priced between Rs 50 lakh to Rs 1 crore accounting for 24 percent of transactions. Properties ranging from 0-500 sqft were in high demand, comprising 56 percent of the transactions.

Ganesh Devadiga, SVP and Sales Director at Square Yards, noted that the onset of Q1 2024 confirmed MMR as a buyer’s market, with planned infrastructure development, particularly upcoming metro lines, opening up new micro-markets for investment opportunities.

According to Square Yards’ report, Macrotech Developers operating under the brand name of Lodha emerged as the top performer in MMR in terms of volume and units sold during the first quarter. Lodha sold 1,881 units amounting to Rs 2,318 crores. Oberoi Realty secured the second spot in total sale value, registering Rs 1,717 crores, while Runwal Group maintained the second spot in the number of units sold with 679 transactions.

Ms. Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra, remarked that the notable surge in home transactions within Mumbai’s peripheral zones during Q1 2024 signifies a promising trend for the real estate sector. With over 60,000 transactions recorded, this robust activity mirrors the escalating demand for housing beyond the city center. Factors such as affordability, enhanced infrastructure, and urban development initiatives contribute to the flourishing market. Buyers in search of spacious homes and superior amenities increasingly find these peripheral zones appealing. However, this trend also underscores the necessity for sustainable urban planning to effectively manage growth and ensure long-term livability. Overall, the momentum in Mumbai’s real estate market bodes well for both investors and residents.

Kunal Chheda, CEO, AWAS Advisory, said that, “Over the last 30 years, various factors like improved connectivity, affordability, weather/liveability parameters and emerging social infrastructure have led to the growth and expansion of Mumbai 1.0 (Island city & Suburbs) to Mumbai 2.0 (Navi Mumbai, Thane, Vasai-Virar) and now to Mumbai 3.0 (Alibag, Panvel, Kalyan, Bhiwandi, Palghar etc). He further added that for achieving the twin objectives of Pradhan Mantri Awas Yojana (PMAY) and Slum Free Mumbai, the timely development of peripheral zones and augmenting rental housing options in Mumbai is highly critical.