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Housing sales: Mumbai residential property sales value likely to top Rs 2 lakh cr by 2030: Study


Mumbai, the country’s biggest and most expensive property market, is expected to continue its positive momentum and is poised for further growth with its residential sales value expected to cross Rs 1 lakh crore in 2023 and go on to breach the Rs 2-lakh-crore mark in 2030, showed a JLL-NAREDCO study.

The city contributes around 40% to the total residential sales value in the country and has demonstrated a robust recovery in 2022, witnessing an increase in both sales value and volume, exceeding the levels observed in 2018.

Additionally, post-COVID-19, the market has witnessed a significant surge in the launch of residential units, with a remarkable year-on-year growth of 183% in 2022. The first half of 2023 has crossed 50% of the total launches recorded in 2022.

The mid-segment projects still account for most of the market activity in Mumbai. However, with changing customer preferences, the focus on upper-mid and premium segments has been on the rise.
The rapid urbanization of Mumbai has led to a larger population residing in areas outside of central Mumbai, creating a disparity between job locations and residential areas. However, upcoming developments will improve east-west connectivity, reduce travel time, and enhance public transportation.“Maharashtra is amid a remarkable transformation driven by the visionary approach of its government towards infrastructure development. The opportunities that lie before us are boundless, and it is our shared responsibility to harness them, for the betterment of the state and the advancement of the real estate sector,” said Sandeep Runwal, President, NAREDCO Maharashtra and MD – Runwal Developers. The average travel time is expected to decrease by 50% over the next five years. These infrastructure developments can transform public transportation in Mumbai, encouraging a shift away from motorized vehicles and increasing the use of metro and monorail. As a result, the public transportation modal share is anticipated to rise to 75% in 2030 from 65% in 2016. Moreover, the metro network will enhance convenience and safety for commuters.“Individuals have a preference of staying close to offices. Owing to this, residential clusters in proximity to office markets have flourished and attract steep prices whereas those with limited connectivity have trailed,” said Karan Singh Sodi, Senior Managing Director, Mumbai, MMR, India, JLL.

According to him, the residential pockets at the intersection of multiple infrastructure projects such as metro, coastal road, Mumbai Trans-Harbour link (MTHL), Navi Mumbai International Airport are poised to witness surge in demand and clusters in these areas will benefit the most.

“While affordability has dropped below the threshold in 2022 and is likely to remain so in the short term given all the macroeconomic headwinds, the large-scale infrastructure development will help Mumbai to continue being a lucrative market. Notably, the planned development of the Mumbai metro corridors and the upcoming airport are both set to considerably benefit residential pockets in their influence zones and ultimately lead to a reduction in the residential price gradient witnessed across submarkets in Mumbai,” said. Samantak Das, Chief Economist, JLL India.

The study has highlighted four residential clusters that have the potential to drive the next phase of growth including Mulund, Thane-Bhiwandi, Pushpak Nagar, and Sewri-Wadala belt.

The focused infrastructure initiatives to enhance connectivity of emerging hubs with established economic hubs, ease transportation, and improve overall infrastructure have played a crucial role in propelling Maharashtra’s economic growth, attracting investments, and improving quality of life for its residents.


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