Mumbai's real estate thriving due to stable interest rates, strong economic outlook


Mumbai, Sep 1 (IANS): The real estate sector in the financial capital is witnessing a significant increase in demand thanks to stable interest rates and a pipeline of new projects, industry experts said on Sunday.

The Mumbai Metropolitan Region (MMR) region is experiencing significant investment, driven by increasing property values and improved connectivity.

“The demand for luxury properties is particularly strong in emerging areas like Andheri, Santacruz, Mulund, Goregaon and Borivali,” said Amit Jain, CMD, Arkade Group.

According to a new Knight Frank India report, Mumbai city (area under BMC jurisdiction) recorded approximately 11,735 property registrations in August, contributing over Rs 1,072 crore to the state exchequer.

Property registrations went up 8 per cent year-on-year and revenues from these registrations increased by 32 per cent YoY.

Sustained buyer confidence has resulted in consistent sales, exceeding 10,000 units for the first eight months of the year, marking eleven consecutive months of annual growth since August 2023, according to the report.

From January to August, the city recorded 96,601 property registrations, marking a 16 per cent increase from 83,615 registrations in the same period in 2023 — generating Rs 8,010 crore in revenue, up by 10 per cent from Rs 7,262 crore last year.

According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, Mumbai’s residential market has maintained strong momentum in 2024, with monthly sales showing consistent YoY growth.

“The strong economic outlook and stable interest rates have kept homebuyer sentiments positive, fuelling steady sales,” he mentioned.

In August, there was a noticeable increase in the registration of apartments measuring between 500 square feet to 1,000 square feet, accounting for 49 per cent of all property registrations.

The share of property registrations in the western suburbs dropped from 57 per cent in August 2023 to 55 per cent in August this year.

Meanwhile, the central suburbs maintained a stable share at 28 per cent, with a slight dip from 29 per cent in August 2023, said the report.

 

  

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Title: Mumbai's real estate thriving due to stable interest rates, strong economic outlook



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