Mumbai's residential market to surpass Rs. 2L crore by 2030
A report by the National Real Estate Development Council (NAREDCO) Maharashtra predicts that Mumbai's residential real estate market will surpass Rs. 1 lakh crore in 2023. It will also breach the Rs. 2 lakh crore mark by 2030. The report, titled "Unlocking Opportunities with Infrastructure Development," reveals a shift in focus toward upper-mid and premium segments due to changing customer preferences.
Home affordability soars in Mumbai
The same report highlights that Mumbai is the fastest-moving city on account of its home purchase affordability index score, becoming an affordable market with a threshold hitting 100 in 2021. This improvement is attributed to the increased focus on the upper middle class and premium segments, catering to the evolving preferences of homebuyers in the city. Mumbai accounts for 40% of total residential sales and saw a robust recovery last year, with a 183% year-on-year growth in launches.
Infrastructure projects are transforming commuting
Upcoming infrastructure projects in Mumbai are expected to improve east-west connectivity, enhance public transportation, and reduce travel time by 50% over the next five years. As a result, the public transportation modal share is anticipated to rise from 65% in 2016 to 75% in 2030. The metro network will play a crucial role in increasing convenience and safety for commuters.
Four residential hotspots to watch
The report identifies four residential clusters with the potential to drive Mumbai's next phase of growth. They are Mulund as the new Bandra of the eastern suburbs, Pushpak Nagar in Navi Mumbai emerging as a residential node, Thane-Bhiwandi, and Pand Sewri and Wadala becoming the next Worli. Residential pockets at the intersection of multiple infrastructure projects are poised to witness a surge in demand and benefit the most.
