People snap up properties in Mumbai, office deals up 29%, housing hits record highs

Mumbai real estate: The reality market of Mumbai witnessed increased buying activity with a surge in office space transactions, reaching 2.8 million sq ft, marking a 29 per cent year-on-year (YoY) increase. Notably, office completions in Mumbai skyrocketed by 986 per cent, reaching 0.4 million sq ft in Q1 2024, according to a report by Knight Frank.

The momentum in office transactions was predominantly driven by India-facing businesses, constituting 88 per cent of the total activity, while flex office areas and third-party IT services contributed 9 per cent and 3 per cent, respectively.

Robust residential rise

Simultaneously, Mumbai's residential market recorded the highest residential sales at 23,743 units during the quarter, reflecting a notable 17 per cent YoY growth. This surge in sales volume was complemented by the launch of over 25,263 units in Mumbai during the same period. The average weighted residential price observed a 6 per cent YoY increase, reaching Rs 7,891 per sq ft in Q1 2024.

Sales segment expansion

Breaking down the residential sales further, Mumbai exhibited growth in the ticket size category of above Rs 1 crore, recording a 259 per cent increase. This segment witnessed the sale of 7,401 units. Additionally, the under Rs 50 lakh category saw substantial growth with 10,527 units sold, reflecting a 13 per cent YoY increase.

Shishir Baijal, Chair & MD, Knight Frank India, commented on the performance of the property market, attributing it to robust performance in both the office and residential sectors. He stressed the notable surge in sales in the higher price category, demonstrating strong demand and buyers' confidence in long-term commitments. 

Return to offices

Furthermore, Baijal highlighted the upward trajectory of the office sector, fuelled by the country's economic stability, which has prompted businesses to expand their operations, thereby driving demand for office spaces.

"Many companies are now reverting to conventional office setups, either reducing or discontinuing their work-from-home policies, further boosting demand. We anticipate these activities to continue at a robust pace in the foreseeable future backed by stable economic policies and favourable domestic conditions,” he said.

Looking ahead, the outlook remains optimistic, with expectations of continued buying activity in both the office and residential sectors, supported by stable economic policies and favourable domestic conditions.