MUMBAI — Be it office leasing or residential demand, Mumbai witnessed
historic high among all metros last year, driven by sustained demand for
premium housing and transformative infrastructure developments, a report showed
on Tuesday.
The financial capital recorded a historic high in office
transaction volumes in 2024, reaching 10.4 million square feet, marking a 40
per cent annual increase from 7.4 million square feet in 2023, according to the
report by Knight Frank India.
In the second half of 2024, Mumbai saw office space transactions
totalling around 4.6 million square feet, reflecting a 9 per cent growth.
India-facing business accounted for most transactions in Mumbai, contributing
around 77 per cent to the overall share in 2024.In 2024,
Mumbai saw the addition of 5.8 million square feet of new
office supply, reflecting an 89 per cent year-on-year growth compared to 2023.
According to Viral Desai from Knight Frank India,
occupier sentiment remained strong, fuelled by a growing economic environment,
rising physical occupancy, and significant infrastructure advancements.
“The introduction of key metro lines, such as the BKC
metro, has notably enhanced accessibility, making Mumbai’s office market
increasingly attractive to occupiers. The city’s office leasing market is set to
continue its upward momentum in 2025, driven by varied occupier demand,
infrastructure-led development, and developer confidence in the city’s
long-term prospects,” Desai mentioned.
The city also remained the largest residential market in
the country, recording sale of 96,187 primary residential units in 2024,
marking a 13-year high with an 11 per cent growth. In H2 2024 alone, 48,928
units were sold, reflecting a 6 per cent YoY increase.
In 2024, the average residential prices rose by 5 per
cent YoY over 2023. The sustained demand of buyers supported this price growth
and kept the momentum ongoing.
Complemented by transformative infrastructure projects
like the Mumbai Coastal Road, Metro Line 3, and the Mumbai Trans Harbour Link
(MTHL), the city continues to strengthen its position as the nation’s premier
real estate market, said the report.
Gulam Zia from Knight Frank India said that Mumbai’s
residential market continues its steady growth, driven by sustained demand for
premium housing and transformative infrastructure developments and key
infrastructure projects like the Mumbai Coastal Road and Metro Lines have
greatly improved connectivity, fuelling demand in suburban areas.
