The Mumbai Metropolitan Region (MMR) has witnessed property transactions surpassing $1.5 billion in 2023, marking the highest in the country. Mumbai dominated the transactions with deals valued at Rs 7,956 crore, while Thane district, although having over three times the number of deals, had a lower transacted value at Rs 2,778 crore. The trend is driven by significant land transactions, including Sumitomo's subsidiary acquiring a 22-acre parcel for Rs 4,674 crore and Prestige Estates Projects purchasing a central Mumbai property for Rs 704 crore. Redevelopment projects, land monetization, and increased construction activity contribute to the robust real estate market in MMR.
In the dynamic real estate landscape of the Mumbai Metropolitan Region (MMR), property transactions have surged, surpassing $1.5 billion in the ongoing year, marking the highest activity nationwide. Mumbai took the lead in terms of transaction value, closing deals worth Rs 7,956 crore, while Thane district, although having more than three times the number of deals compared to Mumbai, reported a lower transacted value at Rs 2,778 crore. A notable transaction involved Sumitomo's subsidiary acquiring a 22-acre land parcel from Bombay Dyeing for Rs 4,674 crore. Prestige Estates Projects, Solitaire Group, and Godrej Properties also made substantial acquisitions in Mumbai during the year.
The scarcity of space in the island city of Mumbai has historically driven up property rates, making redevelopment projects and the monetization of land by industrial houses crucial for freeing up space within city limits. Despite the high costs, developers are willing to pay a premium for these strategically located plots to construct premium and luxury residences.
Beyond the city limits, Thane has become a focal point for construction activity, anticipating improved connectivity with an upcoming metro. Approximately 60 deals were transacted in Thane this year, including significant transactions like Mukand Ltd selling a 42-acre land to a digital infrastructure company for Rs 727 crore, Kansai Nerolac Paints selling a 24-acre land to the Hiranandani Group for Rs 671 crore, and Oberoi Realty acquiring an 8-acre land parcel from Blue Star for Rs 192 crore. Recent transactions include a 5-acre land parcel changing hands for Rs 109 crore.
Raigad, witnessing over 80 transactions, reported smaller deal sizes, with the largest transaction valued at Rs 20 crore, involving Riddhi Siddhi Developers acquiring a small land piece from an individual. Developers, hoteliers, educational institutions, and even actors have been active in acquiring properties in Raigad.
Industry data consistently position MMR as accounting for half of the property market in India in terms of value. In recent years, MMR has not only led in terms of sales but also in launches. Currently, there's a lag in supply compared to demand, but once these transactions materialize into on-ground projects, analysts foresee a potential oversupply situation.
This robust activity in the MMR property market not only reflects the attractiveness of Mumbai but also underscores the strategic expansion into neighbouring areas. As real estate developers gear up for launches in response to anticipated demand, the evolving landscape is poised to reshape the region's property dynamics.
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