Real Estate News - Mumbai

Mumbai, the heart of India's financial and entertainment industry, is also a dynamic real estate market. From luxury high-rises to affordable housing, from commercial spaces to infrastructure projects, there's always something happening.

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• Breaking news and updates: Stay informed about the latest trends, market analysis, and policy changes affecting Mumbai's real estate landscape.
• Property discussions: Share your experiences, ask questions, and connect with fellow Mumbaikars interested in buying, selling, or renting property.
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Whether you're a seasoned investor, a first-time homebuyer, or simply interested in the city's property market, join the conversation and share your knowledge!

A total of 1.90 lakh rental agreements, also known as leave and license agreements, were registered in Mumbai’s real estate market in the first six months of 2024 - a 13% increase from 1.67 lakh rent agreements registered during the same period in 2023. These were registered across all segments - residential, commercial and retail, according to the data shared by the Maharashtra Inspector General of Registration (IGR).

In 2022, 1.55 lakh rental agreements were registered during the same period.

Overall in 2022, 3.06 lakh rental agreements were registered in Mumbai that went up to 3.33 lakh in 2023. In 2024, around 2.09 lakh rental agreements were registered from January 1 to July 18.

According to real estate consultants, the rental agreement registration data indicates that more buildings are going in for redevelopment. Additionally, this increase can be attributed to increased commercial and retail leasing.

Is redevelopment of old buildings in south Mumbai leading to an increase in rental demand?

In 2023 and 2024, there has been an uptick in commercial leasing in South Mumbai, but an increase in residential leasing is significant.

"The reason is that many small, old buildings are now being redeveloped in South Mumbai, leading to higher rental demand in the residential segment. However, in 2025-26, there is a chance that rental demand and supply will match due to the completion of many projects," said Pramod Vyas, President of SMART (South MetroCity Association of Realtors), the apex body of real estate consultants from South Mumbai.

"The rental agreement registration going up by 13% according to the Maharashtra IGR data indicates that demand for rental properties has gone up in the city. However, when it comes to the residential segment, the surge can be attributed to a large number of old buildings in South Mumbai and parts of Central Mumbai going in for redevelopment owing to which there is more demand for rented accommodation in those areas," said Dhiren Doshi, a real estate consultant based out of western suburbs in Mumbai.

In areas between Borivali to Malad, redevelopment of old buildings has hit a saturation point.

There was a mad rush in 2022 and 2023 due to which there was a lot of demand for renting apartments in the last two years, but that has corrected in 2024. Along with this, there is cooling off in rentals too.

"Also, majority of flats given on rent in the last two years in areas like Borivali and Kandivali were leased for three years and these will start coming into the market from mid or end of 2025. This will lead to an increase in supply as more buildings will complete construction post redevelopment. For demand during that time, we will have to wait and watch how it shapes up," Doshi added.

Credit: Hindustan Times

DLF to Expand into Mumbai with New Projects..,

DLF Ltd., os set to broaden its portfolio by entering the Mumbai and Goa markets. This expansion plan includes both residential and commercial property projects, marking a significant step in the company's growth strategy.

This strategic move is part of DLF's broader plan to enhance its footprint across major Indian cities and expand its market reach. By tapping into Mumbai's bustling real estate sector, DLF aims to capitalise on the diverse growth potential offered by these locations

Mumbai saw 5 land deals for 34 acres in the first half of this calendar year.

The Mumbai real estate market gains momentum with the onset of the festive season starting with the Ganesh festival.

"Housing sales tend to decrease during the monsoon season (July – Sept) compared to other quarters of the year. This has more to do with prospective homebuyers’ inability to go out for site visits during rains, which seriously affect mobility in Mumbai, than with an actual dip in demand," said Rajkumar Singh, Head - Residential Services (West), ANAROCK Group, a real estate consultancy firm.

"Also, many homebuyers postpone their home buying decision for the festive season between October and December, which is considered the most auspicious period for buying a home. If we consider past data trends, out of the four quarters in 2019, the monsoon quarter (July-Sept) saw the least sales," Singh added.

According to ANAROCK Research data, in Mumbai Metropolitan Region (MMR)'s primary market as many as 17,180 units were sold in Q3 2019 as against 24,000 units in Q1 2019, approximately 21,630 units in Q2 2019 and over 18,320 units in Q4 2019.

Similarly in the post Covid-19 pandemic period, in Q1 of calendar year 2022, 29,130 homes were sold in MMR, 25,785 homes were sold in Q2, 26,400 homes were sold in Q3 and in Q4, 28,148 homes were sold.

In terms of property registrations, 31,836 property registrations were reported in the first quarter of the calendar year of 2023 in Mumbai, 30,656 in Q2, 31,817in Q3 and 32,598 in Q4 of 2023, according to data shared by Knight Frank India, a real estate consultancy firm.

Waterlogging impacts real estate prices in Mumbai

According to real estate consultants, waterlogging impacts prices of real estate projects in Mumbai. Life can seriously be thrown out of gear on account of waterlogging and that impacts both the property prices and rentals in the city.

Experts say that property rates in the micro market can be 10-20% less when it comes to purchasing or renting an apartment in an area that is prone to flooding or water logging.

There are several areas, including Gandhi Market in Sion, Hindmata near Dadar, Nana Chowk in Grant Road, Milan Subway in Vile Parle and Dahisar subway where waterlogging is a perennial issue and property prices are impacted.

Redevelopment Drives Demand for Rentals in South Mumbai

The trend of redeveloping old buildings in South Mumbai is a significant contributor to the rise in rental registrations. As these projects displace residents, it creates a demand for temporary housing, leading to more rental agreements. Experts predict this trend will continue until the redevelopment projects are completed, potentially leading to a more balanced rental market in 2025-2026.

Increase in Commercial and Retail Leases

The data also suggests a rise in commercial and retail leasing activity across Mumbai. This could be due to various factors, such as businesses expanding or relocating to new spaces.

L&T Realty, Valor Estate ink pact for 20,000-cr joint development in Mumbai’s BKC project

L&T Realty and Valor Estate announced a Rs 20,000-crore joint project in Bandra-Kurla Complex, Mumbai. The project includes luxury housing, commercial spaces, and a five-star hotel. Valor Estate will handle land approvals, with the project set to complete in 5-6 years. The development potential is over 7.5 million sq ft.

WeWork India renews lease for 1.4 lakh sq ft office space in Mumbai at ₹2.25 crore rent per month

Flexible workspace solutions provider, WeWork India, has renewed a lease agreement for 1.40 lakh sq ft office space in Mumbai at a monthly rental fee of ₹2.25 crore, property registration documents accessed through real estate data analytics platform Propstack showed.

According to the documents, the space leased by the co-working player includes multiple units spread across five floors, alongside parking for 104 cars, in Tower 4 of Nesco IT Park, located in Mumbai's Goregaon East suburb.

At a rate of ₹162 per square feet, the rental fee for the first year will amount to a total of ₹27 crore, according to the latest agreement. Terms of the deal include a 12% rent escalation to ₹181 per square feet in August 2025 and ₹203 per sq ft in August 2028, the documents showed. The renewed five-year lease period begins on August 1, 2024.

The renewal deal, registered on July 16, named Mumbai-headquartered Nesco Limited as the licensor and involved a stamp duty of ₹37.93 lakh, per the documents.