Mumbai’s Real Estate Surge: October 2024 Property Registrations Soar

Mumbai: In the October 2024, Mumbai city saw a stellar upturn in the real estate sector, with yearly property registrations rising 22%. In October 2023, the total of 12,960 units were registered across this period, as opposed to 10,607, a report released by Knight Frank India states. This significant surge can be directly linked to the increased demand prompted by the festive season, particularly during auspicious times such as Dussehra and Diwali.

Residential Sector Leading the Charge

Experts also point out that residential properties were the largest beneficiary of the surge, which attracted 80% of total registrations. This majority highlights the fact that such is the consistent demand for homes across the city. This momentum was substantially catalysed by the festive period when buyers looked to capitalise on auspicious time slots to implement large scale purchases.

High-Value Property Segment Shows Strong Growth

One highlight of October 2024 was the notable rise of high-value transactions. For properties over Rs 2 crore, December registrations increased to 2,876 units (22% of total registrations) as against 18% in October 2023. The increase in the number of these transactions also indicates a change in market behaviour in which purchasers are buying better quality stock with more amenity and lifestyle benefits.

Analysts suggest the change has arisen due to the steadiness of the economy as well as the aspirations of the city’s dwellers adapting. With the property market now entering its next phase of maturity focused on quality and lifestyle, buyers are beginning to demand more from their broader living experience.

Expert Insights: Market Sentiment and Buyer Behavior

Prashant Sharma, President of NAREDCO Maharashtra, emphasised the impact of the festive season on property investments. He noted, “The remarkable increase in property registrations and revenue generation this October underscores the positive sentiment surrounding property investments during the festive period. The alignment of auspicious occasions like Navratri and Diwali in the same month has certainly catalysed this growth.”

Rajeev Ranjan, Co-Founder & CEO of The Mentors Real Estate Advisory Pvt Ltd, echoed this sentiment, stating, “The festive period has brought forth a surge in property registrations, fueled by the high-value sentiment associated with Navratri and Diwali. This seasonal upturn, combined with Mumbai’s strategic allure as a premium investment destination, showcases the strength of the real estate sector as a wealth-building asset for buyers.”

The Decline in Lower-End Market Share

While the high-value segment flourished, the report highlighted a contrasting trend in the lower end of the market. Registrations for properties priced below Rs 50 lakh fell from 27% in October 2023 to 20% in October 2024. This shift points to a move towards mid-to-high-end property investments, driven by changing buyer preferences and the economic backdrop that favours quality over quantity.

According to Vedanshu Kedia, Director of Prescon Group, “The increased demand in the high-value property segment underscores a shift in buyer preference towards premium, amenitized living experiences. This trend highlights the aspirations of Mumbai’s buyers for quality and lifestyle-driven investments.”

A Reflection of Economic Stability and Aspirational Buying

The increased activity in the real estate market, particularly in the premium segment, reflects a broader pattern of aspirational buying among Mumbai’s residents. Economic stability has reinforced confidence in long-term investments, making high-value properties more appealing. Rohan Khatau, Director of CCI Projects, noted, “The significant increase in registrations, particularly in premium segments, signals robust demand driven by economic stability and aspirational buying.”

This trend is further supported by a reduced share of lower-value properties, indicating a shift in Mumbai homebuyers’ investment approach. Khatau added that buyers are now more focused on acquiring properties that enhance their quality of life.

Infrastructure Advancements and Future Outlook

This momentum observed in October 2024 is likely to continue with every upgradation in Mumbai’s infrastructure. Future projects such as the metro expansion, fresh expressways and urban regeneration plans which will interest property buyers across all segments, will make the city even more popular.

Govind Krishnan Muthukumar, sManaging Director & Co-founder, Tridhaatu Realty commented, The rise in property registrations has been consistent over the past few months. That also reinforces Mumbai status as a hot and resilient realty market with decent demand for high-value properties. With infrastructure enhancements to come near future, we are hoping for this sentiments to stay, feeding into positive foreign investment movement across all pricing brackets."

Conclusion: Mumbai's Real Estate Resilience

The October 2024 property market report from Knight Frank India showcases Mumbai’s resilience and evolving buyer preferences. High-value property transactions are not just a trend but a reflection of a maturing market driven by aspirations for better living standards, economic stability, and strategic investment opportunities. This surge, fueled by festive season enthusiasm and favorable state policies, positions Mumbai as a premier investment destination, poised for growth as it continues to evolve with upcoming infrastructural advancements. 

With the continued focus on quality, strategic location, and amenities, Mumbai's real estate landscape is set to remain strong, reinforcing its status as an attractive option for both residents and investors.