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Overview of the Mumbai Metropolitan Region (MMR) Real Estate Market

The Mumbai Metropolitan Region (MMR) that covers Mumbai and its nearby areas stands out as one of India's most active and lively real estate markets. Several important considerations arise when thinking about buying or renting a property in this region.

Market Trends and Sales

• During 2024's fiscal year, the MMR experienced a 5% rise in sales compared to the prior year, yet faced a 22% dip in new residential unit launches. This signals ongoing strong and consistent market demand.
• Property registrations hit a peak over 1.41 lakh in 2024, driven largely by the western and central suburbs.

Price Appreciation and Inventory

• Real estate prices in the MMR have gone up steadily with a 4% increase year on year in Q3 2024. Places like Panvel, Thane, and Mumbai City saw major price hikes, with Panvel at a 12% YoY surge.
• New unit supply dropped, but unsold inventory saw a slight increase, up by 5% by the end of FY24 compared to FY23.

Preferred Areas for Buyers

• Western suburbs including Borivali, Kandivali, Malad, Goregaon, and Dahisar are highly sought after, contributing to 53% of property dealings in December 2024.
• Central suburbs such as Mulund, Bhandup, Vikhroli, Kanjurmarg, and Ghatkopar are also popular, accounting for 33% of registrations in December 2024.
• Thane has become a prime spot due to its social infrastructure, Metro connectivity, and affordability, making it a good choice for home buyers.

Rental Market

• Rental fees fluctuate greatly. For example, a 2 BHK apartment in the western suburbs can range from ₹35,000 to ₹70,000 per month. Thane fees range from ₹24,000 to ₹33,000. Virar sees rates from ₹13,000 to ₹17,000 per month.

Infrastructure and Development

• The area is seeing big infrastructure changes. The Metro Line 3, Phase 1, is completed and Phase 2 of the Coastal Road Project awaits. These will help raise property prices and improve connectivity, especially in the Western suburbs.
• Upcoming projects like the Mumbai-Ahmedabad bullet train and new Metro lines aim to improve areas such as Vasai and Virar by boosting connectivity and real estate growth.

Affordability and Government Initiatives

• Affordable housing projects continue to push forward with schemes like PMAY. This aims to make housing more available to young professionals and fence-sitters.
• Affordable and mid-end market segments spurred new launches in the MMR. This made up 30% and 28% of the total launches in Q3 2024.

PropertyWala's Verdict

When it comes to buying or renting in the MMR, the market presents a mix of chances and hurdles. High demand and limited supply drive up property prices, but places like Thane, Navi Mumbai, and central and western suburbs have affordability and infrastructure. Upcoming and ongoing infrastructure projects promise to boost connectivity and help properties rise in value. Consider prioritizing areas with good connectivity and infrastructure to gain the most in the long term. Looking at affordable and mid-end segments could offer more value, especially with government plans to make housing more accessible.