Mumbai Records Highest House Sales in 11 Years; Real Estate Market Thrives Despite Challenges

Mumbai, 4th January 2024: Mumbai has maintained its stronghold in the real estate market, reporting the sale of 86,871 houses in the past year, according to a report by Knight Frank, a renowned survey company. This marks the highest number of house sales in the city in the last 11 years. The half-yearly report also reveals that 93,051 new houses were made available for sale this year, a record-breaking figure not seen since 2014. The report further notes an average seven per cent increase in house prices in Mumbai over the last year.

The surge in home sales and newly announced projects was particularly prominent in the eastern suburbs, surpassing the western suburbs. Mumbai is claimed to have outperformed other cities in Maharashtra, including Thane, Pune, Nashik, Nagpur, and Aurangabad, in terms of house sales. The peak periods for house sales this year were during Navratri, Dussehra, and Diwali, with a notable preference for smaller houses in the Mumbai metropolitan area. Surprisingly, expensive houses in south and central Mumbai also witnessed higher sales compared to 2022. The report highlights increased demand for houses in the range of one to two crores.

Notably, the report indicates a significant resurgence in home sales and new construction, marking the first substantial recovery in the post-COVID era. Sales in the range of 50 lakhs to 1 crore saw a remarkable 15 per cent increase this year. The report breaks down the sales figures, revealing 39,093 houses sold for less than 50 lakhs, 26,610 houses sold in the 50 lakhs to 1 crore range, and 21,167 houses sold for more than 1 crore. Various neighbourhoods such as Lower Parel, Worli, Mulund, Vashi, Ghatkopar, Naupada, Powai, Andheri, Panvel, Kharghar, Borivali, Goregaon, and Mira Road witnessed increases ranging from four to eight per cent.

Shishir Baijal, Chairman, and Managing Director of Knight Frank expressed optimism about the future, anticipating a further uptick in home sales in the coming months. He also noted that housing prices are expected to see a modest increase. The positive response to new construction projects and the rising sale of vacant houses indicate a promising trajectory for Mumbai’s real estate market.