Mumbai’s Residential Market Expected to Surpass Rs 2 Lakh Crore by 2030: JLL-NAREDCO

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    Mumbai, renowned as one of India’s premier residential real estate hubs, maintains its dominance, contributing to a substantial 40 percent share in the nation’s overall residential sales. Recent findings from a report, jointly published by Jones Lang Lasalle India (JLL), a prominent real estate consultancy, and the National Real Estate Development Council (NAREDCO) Maharashtra, an apex organization of developers, reveal that Mumbai’s residential property market is poised for significant expansion. The report anticipates that sales will soar past Rs 1 lakh crore in 2023 and are set to breach the remarkable Rs 2 lakh crore mark by 2030.

    The report, titled “Unlocking Opportunities with Infrastructure Development,” emphasizes that mid-segment projects currently dominate the Mumbai market. However, evolving consumer preferences are shifting the focus towards the upper mid and premium segments.

    Mumbai, as the nation’s financial capital, consistently maintains its stature as one of India’s largest residential markets, commanding a substantial 40 percent share in total residential sales. In 2022, the city demonstrated a robust recovery with both sales values and volumes surpassing the levels observed in 2018.

    Post-pandemic, the Mumbai residential market experienced a surge in the launch of new units, boasting a staggering year-on-year growth rate of 183 percent in 2022. In the first half of 2023, the number of launches surpassed 50 percent of the total recorded in 2022. Notably, Mumbai has emerged as the fastest-moving city in terms of its home purchase affordability index score, achieving affordability status in 2021 due to historically low interest rates, attractive property prices, and the recovery of household incomes.

    According to the report, upcoming infrastructure developments will play a pivotal role in reshaping the city. Enhancements in east-west connectivity and improved public transportation are expected to significantly reduce travel times. The report predicts a 50 percent reduction in average travel time over the next five years. These developments aim to encourage a shift from motorized vehicles to increased utilization of the metro and monorail, with the anticipated public transportation modal share rising from 65 percent in 2016 to 75 percent in 2030. The expanding metro network is also expected to enhance convenience and safety for commuters.

    Karan Singh Sodi, senior managing director at JLL India, noted that individuals increasingly prefer residing near office markets, leading to flourishing residential clusters in proximity to these areas, often commanding higher prices. Areas with limited connectivity, on the other hand, lag behind.

    The report identifies four residential clusters with the potential to drive the next phase of growth in Mumbai: Mulund, poised to become the new Bandra of the eastern suburbs; Thane-Bhiwandi, where prices are projected to reach Majiwada levels; Pushpak Nagar in Navi Mumbai, set to emerge as a significant residential node; and Sewri and Wadala, which could transform into the next Worli, especially with the proposed eastern waterfront development.

    Samantak Das, chief economist and head of research and REIS, India, JLL, emphasized, “The large-scale infrastructure development will help Mumbai to continue being a lucrative market.” He anticipates that key growth corridors in Mumbai will extend towards the eastern part of the city and the Thane-Navi Mumbai suburban areas.

    Read in Details: India’s Residential Real Estate Sales Set for Strong Growth in 2023-24, Predicts Crisil Ratings

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