In its latest report, **‘India Real Estate: Residential and Office Q3 2024 (July – September 2024)’**, Knight Frank India revealed significant growth trends in Mumbai’s real estate market.
### Mumbai’s Residential Market Leads with Highest Sales
Mumbai’s residential market recorded the highest sales among eight major Indian cities, with **24,222 units sold**, marking a **9% year-on-year (YoY) growth**. During the same period, the city witnessed the launch of **23,677 new residential units**.
The average weighted residential price in Mumbai saw a **6% YoY increase**, reaching **Rs 8,056 per sq ft**, making it the highest residential price in the country.
### Growth Across Price Segments
Mumbai experienced a **10% YoY growth** in the Rs 5 million to 10 million ticket size category during Q3 2024, which contributed to **24% of the city’s total sales**. Meanwhile, the under Rs 5 million segment recorded the highest sales volume, with **10,198 units sold**—representing **42% of total sales**.
The Rs 10 million and above category showed a robust **16% YoY growth**, rising from 7,018 units in Q3 2023 to 8,153 units in Q3 2024.
### Office Space: Record Transactions and Completions
Mumbai also led the office real estate market, reporting the highest number of office space transactions among the eight cities, with **1.93 million sq ft** leased during Q3 2024.
The city’s total office space transactions reached **2.7 million sq ft** during this period, while office completions surged by **167%**, hitting **0.8 million sq ft**.
### Industry Insights from Knight Frank India
Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented,
“**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, the 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.”
### Broader Office Market Trends
The report also highlighted that office space transactions across the country reached **19 million sq ft in Q3 2024**, the highest quarterly absorption since Q1 2018. This reflects an **18% YoY increase** from 16.1 million sq ft in Q3 2023.
Year-to-date leasing stood at **53.7 million sq ft** within the first nine months of 2024, a **27% increase YoY**, putting the market on track to achieve a new annual high.
The strong demand in office space demonstrates business confidence in the Indian economy’s ongoing growth. Additionally, increased interest from GCC countries signals a growing commitment from global enterprises towards India’s business environment.
### Perspective from Ajmera Realty & Infra India Ltd
Dhaval Ajmera, Director at Ajmera Realty & Infra India Ltd, added,
“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 activities, reshaping the skyline of key micro-markets and creating demand in emerging areas. The recognition of real estate as a valuable asset class has also attracted numerous domestic and NRI investors.”
He further noted,
“When it comes to commercial real estate, established locations like BKC and Nariman Point are nearly at peak capacity. However, emerging micro-markets such as Wadala are becoming strong contenders for commercial and retail real estate. The reopening of offices and growth in job opportunities in India’s Silicon Valley are attracting businesses and professionals, driving increases in commercial real estate sales and rental prices in this area.”
“Overall, with strong support from the increased purchasing power of homebuyers and their desire to enhance living conditions, the positive growth trend in the Indian real estate market is expected to continue into the coming year,” Ajmera concluded.
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**For more updates and insights on India’s real estate sector, stay tuned to Knight Frank India.**
https://www.freepressjournal.in/business/mumbais-residential-market-records-9-yoy-growth-in-q3-reveals-knight-frank-report