MMR Real Estate reaches new peak in 1HCY24

MMR residential real estate market hits new highs in 2024

City at a glance

• Mumbai is the financial capital of India with around 40% of Indian taxpayers residing in Mumbai.
• Mumbai has a diversified economic base, with sectors such as business services, trade and transport, manufacturing, BFSI and IT being the major job creators and economic drivers.
• In 2023, Mumbai’s household disposable income was INR 12.8 lakh which is among the highest compared to all cities in India.
• Mumbai has a young population with ~74% of the population in the working age group (15 – 64 years) and only 7% of individuals over 64 years in age.
• MMR (Mumbai Metropolitan Region) which comprises of Mumbai city, Navi Mumbai, Thane, Kalyan Dombivali, Vasai Virar, Mira Bhayandar, Bhiwandi is one of the major economic drivers of India.
• MMR is undergoing a comprehensive infrastructure transformation which is expected to significantly improve connectivity between the main city, suburbs, extended suburbs and major commercial hubs. The Government’s investment in multi-modal infrastructure projects is expected to transform the city into a global services hub further boosting real estate prospects in the city.

MMR Real Estate

• MMR is one of the leading residential markets in India contributing 25% of new launches and 22% of overall sales in India during 2022-1H2024.
• Expected time to liquidate unsold residential inventory in MMR decreased by ~47% during 2022-1H2024.
• Real estate players have acquired (outright or through joint development agreement) more than 260 acres of land in MMR in recent years for residential projects with a development potential of ~42-48 MM sf and sales potential of ~ INR 70,000 crore.
• MMR which is home to many domestic and multinational companies comprises of ~19% of the overall Grade A office stock in India. Andheri Kurla belt is one of Mumbai’s largest business districts with 13% of operational office stock.
• MMR is only the second city amongst top 6 cities in India where vacancy levels showed improvement between 2021-1H2024 (MMR’s vacancy levels improved by 3.6%).

MMR Residential market

• Over 1.15 lakh property registrations done during the first 10 months of this year (JanOct 2024), already reaching 90%+ of registrations done in CY23.
• Maharashtra government’s revenue from property registrations from Jan to Oct 2024 has touched close to INR 10,000 Cr, also already reaching 90%+ of revenue from registrations done in CY23.
• As per JLL, residential sales value is expected to increase in CY24 by 15% y-o-y.
• 1HCY24 recorded highest ever half yearly sales:
  • In 1HCY24, sales grew by 29% y-o-y while launches grew by only 1% y-o-y.
  • YTS(1) (expected time to liquidate the unsold inventory) also dropped to a record low of 2.6 years in 1HCY24, down from 2.8 years in the previous year.