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Over the past couple of years, Thane's real estate sector has demonstrated consistent growth, establishing itself as a prime market within the Mumbai Metropolitan Region (MMR). Residential demand surged, with a 6.8% quarter-on-quarter increase in Q1 2023, and property rates rose significantly across key locations. Infrastructure developments such as the Thane-Borivali Twin Tunnel and Metro Line 4 have enhanced connectivity, boosting investor confidence. Major developers launched successful projects, while commercial and retail segments also gained traction. Rising construction costs and interest rate hikes posed challenges, yet Thane's affordability relative to Mumbai maintained its appeal.
Thane's real estate market has experienced steady growth over the past couple of years, solidifying its reputation as a prime destination within the Mumbai Metropolitan Region (MMR). The positive trajectory is backed by data, particularly in the residential segment, where demand witnessed a sharp rise. Reports indicate that in the first quarter of 2023 alone, there was a 6.8% quarter-on-quarter increase in residential demand. Advertisement
Property prices in Thane followed suit. In early 2023, average residential rates ranged between INR 18,000-19,000 per sq ft, which escalated to INR 19,800-20,000 per sq ft by late 2024, varying by micro-market. Prime locations such as Ghodbunder Road, Pokhran Road, and Hiranandani Estate saw even sharper appreciation, with prices increasing from INR 12,000-15,000 per sq ft in 2022 to INR 15,000-25,000 per sq ft at present.
Ghodbunder Road has stood out, with research reports suggesting a 300% growth over the past decade, with a substantial portion of this increase occurring in the last two years. This growth has been propelled by infrastructure advancements and heightened buyer confidence. Developments such as the Thane-Borivali Twin Tunnel, which commenced in 2023, and Metro Line 4 (Wadala-Kasarvadavali) have significantly contributed to market optimism and demand.
New project launches by renowned developers have further fuelled this momentum. For instance, Oberoi Realty's Thane project, launched in October 2024, achieved sales worth INR 1,348 crore within three days, despite possession timelines extending to 2031. This underscores strong market confidence in Thane's future. Both affordable (INR 8,000-11,000 per sq ft in areas like Kasarvadavali) and luxury (INR 20,000+ per sq ft in Manpada) segments have recorded significant traction, with 2 BHK and 3 BHK units being the most sought-after.
Commercial real estate in Thane has also gained momentum, driven by its cost advantage over Mumbai. Office spaces in locations like Wagle Estate and Ghodbunder Road are priced between INR 9,000-15,000 per sq ft, compared to Mumbai's INR 30,000+ per sq ft. This price difference has attracted businesses, particularly in the post-pandemic era, where hybrid work models have become the norm. Rental yields for commercial properties have remained stable at 6-8%, outperforming many micro-markets across the MMR.
Retail spaces have also experienced a resurgence, with malls and high-street retail in Thane West witnessing footfall recovery to pre-pandemic levels by mid-2023. Statistical data reinforces this strong performance.
Although housing supply saw a slight dip-declining by 2% quarter-on-quarter in Q1 2023-this market tightening contributed to a 1.7% price increase during the period. However, new launches continued at a steady pace, with over 27,000 new units registered in the first half of 2024, according to MahaRERA. A considerable portion of these units belonged to the mid-to-premium segment, priced between INR 1-2 crore. Buyer demographics have also evolved, with IT professionals, young families, and non-resident Indians (NRIs) increasingly investing in Thane. Factors such as better air quality, abundant green spaces, and reputed educational institutions-including Poddar International School, C.P. Goenka International School, D.A.V. Public School, and Euro School-have made Thane a preferred choice.
However, the market has faced some challenges. Construction costs have risen by 10-15% since 2023 due to raw material price inflation, compelling developers to either raise prices or reconfigure certain projects. The lingering effects of the COVID-19 pandemic persisted into early 2023, with some unsold inventory from smaller developers. Nonetheless, this inventory was gradually absorbed as demand rebounded. Additionally, the Reserve Bank of India's decision to raise the repo rate to 6.5% by mid-2023 resulted in higher borrowing costs, yet Thane's relative affordability compared to Mumbai sustained buyer interest.
Overall, the past couple of years have marked a phase of consolidation for Thane's real estate market, coinciding with Jitendra Mehta's tenure as President of CREDAI MCHI Thane. Property prices increased by an average of 10-15%, while demand outstripped supply in key locations. Investor interest has surged, not as part of a speculative bubble, but as a reflection of a maturing market driven by robust infrastructure and the city's appeal as a viable alternative to Mumbai. As Jitendra Mehta hands over leadership to Sachin Mirani, he extends his best wishes to the new team at CREDAI MCHI Thane, expressing optimism for even better prospects ahead.
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