Mumbai’s Real Estate Market in 2024 | The Rise of Affordable Homes and Changing Buyer Preferences

Mumbai’s Real Estate Market in 2024: The Rise of Affordable Homes and Changing Buyer Preferences

A City in Transition: The New Face of Mumbai’s Housing Market

Mumbai, India’s financial capital, has always been synonymous with towering skyscrapers and premium real estate. However, the housing landscape is evolving. In 2024, nearly 50% of newly registered properties in the city measured less than 650 sq ft, signaling a strong shift towards affordable and compact housing. According to data from the Maharashtra Real Estate Regulatory Authority (MahaRERA), approximately 60% of these units were either 1 BHK or 2 BHK apartments, reflecting the preferences of modern homebuyers looking for budget-friendly homes in a high-demand metropolis.

The Growth of Compact Living: Demand Meets Affordability

While compact homes remain the dominant trend, a fascinating shift is occurring—apartment sizes are gradually increasing. Over the past five years, the supply of mid-sized apartments (650 sq ft to 1,300 sq ft) has nearly doubled, driven by evolving lifestyle needs and economic stability. This transformation reflects an interesting contradiction: while affordability remains a key driver, there is a growing demand for spacious living as financial confidence returns post-pandemic.

Steady Growth in Housing Registrations

The number of new housing units registered in Mumbai has shown an upward trend despite market fluctuations. In 2024, Mumbai recorded 63,244 housing units, marking a 4% increase from 60,930 units in 2023. However, this figure still lags behind the 75,000-unit peak of 2022.

Breakdown of New Housing Units in 2024:

1 BHK & 2 BHK units: 36,274 (largest share of new launches)

3 BHK units: 15% of total registrations

4 BHK & luxury apartments: Around 3%

Commercial spaces (offices & retail units): Over 6,200 units (10% of total registrations)

Expanding Horizons: Key Areas Driving Development

Peripheral neighborhoods have become the hotspots of new real estate developments. Locations such as Kurla East, Bandra West, Vile Parle East, Andheri East, Marol, Malad, Ghatkopar East, Bhandup West, Vikhroli, Borivali West, and Kandivali East have witnessed a surge in new housing supply. Among these, Bhandup West, Mulund West, Borivali West, Malad East, and Oshiwara recorded over 1,000 new unit launches each.

The Influence of Market Dynamics and Policy Changes

Despite a 15% decline in registrations compared to 2022, Mumbai’s real estate sector is demonstrating strong post-pandemic recovery. Nearly 90% of new launches are concentrated in North and Central Mumbai, including Dadar and Sion.

Several key factors have contributed to this market momentum:

- Relaxation of Coastal Regulation Zone (CRZ) norms, opening up new land parcels for development.

- A 50% reduction in premium charges, making housing projects more financially viable.

- Stable market conditions, allowing developers to introduce more housing supply at competitive pricing.

The Road Ahead: Affordability vs. Aspirations

Even as compact housing continues to dominate Mumbai’s real estate market, the city is witnessing a steady rise in demand for larger apartments. The pricing spectrum remains diverse, with residential properties ranging from ₹20,000 per sq ft in emerging locations to ₹1.60 lakh per sq ft for ultra-luxury homes in premium areas. The coming years will likely see a balance between affordability and aspirations, shaping the future of Mumbai’s housing market.