Mumbai Residential Market, Through the Lens of Time

India stands on the brink of an infrastructure resurgence with the union government undertaking an ambitious agenda to revamp the nation’s physical landscape. The goal is to spur economic growth, bolster connectivity and elevate the quality of life for its citizens. In alignment with these objectives, the Maharashtra government has demonstrated a strong commitment to sustainable and holistic infrastructure development. Mumbai, often referred to as the financial capital of India, is undergoing a comprehensive transformation as the state government embarks on an ambitious plan to transform the city into a global services hub. By investing in infrastructure projects that promote economic growth and enhance connectivity, Mumbai is paving the way for a more prosperous future.

Mumbai's infrastructure investment took a significant turn post 2016, as the focus shifted towards a more holistic approach. This inclusive development extended beyond the city limits and reached the sister cities of Thane and Navi Mumbai. As a result, there has been a discernible growth in the northward and eastward directions. This was facilitated by the establishment of transit networks connecting the suburbs to the main city hubs.

Projects like the operational Mumbai Metro lines, the Mumbai Trans Harbour Link and the partial completion of the Coastal Road have enhanced accessibility to employment centers. The government's investment in multi-modal connectivity projects has been a game-changer for Mumbai. Over the next 5-6 years, comprehensive infrastructure development is anticipated to usher in a new era in public transportation.

Due to limited greenfield development opportunities in prime city areas, redevelopment has also emerged as a crucial approach for developers. Infrastructure improvements in city zones are driving redevelopment prospects in densely populated residential districts.

Against this backdrop, Mumbai has firmly established itself as a leading contributor to pan India residential launches and sales. It currently holds the title for the largest residential market by sales value. The sales value is expected to reach over INR 1.35 lakh crore in 2024, setting a new milestone for the city. In a bid to shape the future of the residential real estate landscape, developers in Mumbai have successfully acquired more than 260 acres of land for future residential projects, through outright purchase or joint development agreements. This translates to a development potential of ~42-48 mn sq ft.

By delving deep into the factors outlined, this report endeavors to provide investors, developers and stakeholders with invaluable perspectives on the multitude of opportunities available in Maharashtra's ever-evolving real estate market.

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