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.
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