In its latest report ‘India Real Estate: Residential and Office Q3 2024 (July - September 2024)’, Knight Frank India revealed that Mumbai's residential market recorded the highest sales among the eight Indian cities, with 24,222 units sold—a 9% year-on-year (YoY) growth. During the same period, 23,677 new units were launched in the city. The average weighted residential price saw a 6% YoY increase, reaching Rs 8,056 per sq ft, the highest in the country.

Mumbai also recorded a 10% YoY growth in the Rs 5 mn to 10 mn ticket size category during Q3 2024, which accounted for 24% of the city's total sales. The under Rs 5 mn segment saw the highest volume, with 10,198 units sold, representing 42% of total sales. Meanwhile, the Rs 10 mn and above category experienced a 16% YoY growth, increasing from 7,018 units in Q3 of 2023 to 8,153 units in Q3 of 2024.

The city also recorded the highest number of office space transactions across the eight Indian cities by India facing business at 1.93 mn sq ft during Q3 of 2024. The total office space transactions in the city reached 2.7 mn sq ft during this period, while office completions saw a significant 167% increase, reaching 0.8 mn sq ft.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “Mumbai’s residential market has sustained its strong momentum in 2024, supported by steady sales, a solid economic outlook, and stable interest rates, all contributing to positive homebuyer sentiment. With continued stability in socio-economic and political conditions, upcoming festive season, and the ongoing growth trajectory, we expect a strong close to 2024, with both residential and commercial office transactions hitting record levels”.

The report also revealed that office space transactions reached 19 million square feet (mn sq ft), the highest quarterly absorption since Q1 2018. This marks an 18% YoY increase from 16.1 mn sq ft in Q3 2023. In year-to-date terms, 2024 has already registered leasing of 53.7 mn sq ft, 27% higher YoY, in the first 9 months of the year, and is on course to breach a fresh annual high in 2024.

The strong demand in the office market reflects the confidence of businesses focused on the Indian economy amid ongoing growth while the increased interest from GCCs highlights global enterprises' high commitment to the Indian business environment.

Commenting on this, Dhaval Ajmera, Director, Ajmera Realty & Infra India Ltd said, “India’s real estate sector, particularly in cities like Mumbai, is experiencing significant growth due to extensive infrastructural development. Mumbai has seen a strong increase in redevelopment, reshaping the skyline of key micro-markets and creating demand in emerging ones. The recognition of real estate as a valuable asset class has also been a major factor in attracting both domestic and NRI investors.”

“When it comes to commercial real estate, well-known locations like BKC and Nariman Point are almost at peak capacity. However, emerging micro-markets like Wadala are becoming strong commercial and retail real estate contenders. The reopening of offices and job opportunities in India’s Silicon Valley is attracting businesses and professionals, leading to an increase in commercial real estate sales and rental prices in this area. Overall, with strong support from the increased purchasing power of homebuyers and the desire to improve their living conditions, the growth trend in the Indian real estate market is expected to continue upward in the coming year,” Ajmera added.