Mumbai's housing market remains robust, contributing 40% to India's residential sales. After a strong recovery in 2022, residential unit launches surged by 183%. The trend is set to continue, with projections of residential sales exceeding INR 1 lakh crore in 2023 and potentially reaching INR 2 lakh crore by 2030. While mid-segment housing dominates, there's a growing interest in upper mid and premium segments. Infrastructure developments are set to improve connectivity and public transportation, reducing travel times by 50% in the next five years. These efforts also aim to increase public transport usage from 65% in 2016 to 75% in 2030, promoting sustainability.
Mumbai, India's bustling metropolis, remains a formidable force in the real estate arena, commanding a staggering 40% share of the nation's residential property transactions. In the year 2022, the city made a resounding comeback, surpassing its 2018 performance both in terms of value and volume of home sales. This resurgence is partly attributed to the aftermath of the COVID-19 pandemic, which witnessed a remarkable 183% surge in the initiation of new residential projects compared to the preceding year.
The first half of 2023 has already witnessed the launch of over half the total new projects unveiled in 2022, signalling an impending expansion in the city's housing market. Projections indicate that the cumulative sales value of residential properties in Mumbai will not only breach the INR 1 lakh crore mark in 2023 but could potentially soar to INR 2 lakh crore by 2030.
Reports underscore that the epicentre of real estate activity in Mumbai predominantly lies within the mid-segment housing market, although shifting buyer preferences are increasingly steering attention toward upper mid-range and premium properties. This shift towards affordability was solidified in 2021 when Mumbai achieved a perfect score of 100 on the home purchase affordability index, buoyed by favourable interest rates and competitive pricing.
The rapid urbanization of Mumbai has led to an increasing number of residents settling in suburban areas, creating a spatial gap between residential zones and employment hubs in the city centre. However, upcoming infrastructure projects are poised to bridge this divide, promising improved connectivity, reduced commute times, and an upgraded public transportation system.
Over the next five years, travel times are expected to be halved, encouraging a shift towards public transportation over private vehicles. This transition is set to bolster the usage of the metro and monorail systems, with the overarching aim of elevating the share of public transport from 65% in 2016 to 75% in 2030.
The expansion of the metro network promises safer and more convenient commuting experiences. Investments in infrastructure have been instrumental in propelling Maharashtra's economic growth, underscored by impressive feats in electricity generation capacity, multiple ports, an extensive road network featuring the Mumbai-Pune Expressway, and the upcoming Mumbai-Nagpur Expressway set to dramatically reduce travel times. Furthermore, the state boasts a robust digital presence, with a substantial number of internet subscribers and mobile phone connections, alongside a proliferation of airports to alleviate congestion at Mumbai's principal aviation hub.
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